Partnering with China: New Opportunities. Yousef A. Al Zamel EVP Corporate Strategy & Planning

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Bethany Newman
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1 Partnering with China: New Opportunities Yousef A. Al Zamel EVP Corporate Strategy & Planning

2 USD Billion China & KSA Bilateral Trade Strong & Growing China Exports to KSA Other Product Exports Petrochemical and Chemical Exports USD Billion China Imports from KSA Crude Imports Petrochemical and Chemical Imports Other Product imports Sources: Government Statistics

3 USD Billion China & GCC Bilateral Trade Strong & Growing China Exports to GCC Other Product Exports Petrochemical and Chemical Exports USD Billion China Imports from GCC Crude Imports Petrochemical and Chemical Imports Other Product imports Sources: MOFCOM

4 KSA & GCC are the Largest Suppliers of Crude Oil to China Total Crude Imports by China, by source, 5300 Kbbl/d (2012) Total Crude Imports by China, by source, 5600 Kbbl/d (2013) Libya 3% UAE 3% Kuwait 4% Kazakhastan 4% Venezuela 5% Iraq 6% Others 16% Oman 7% Russia 9% Iran 8% Saudi Arabia 20% Angola 15% Congo 2% Kuwait 3% UAE 4% Kazakhstan 4% Venenzula 6% Iraq 8% Brazil 2% Others 12% Oman 9% Saudi Arabia 19% Iran 8% Angola 14% Russia 9% KSA has been the largest crude supplier to China, supplying Sources: EIA 19~20% of China s crude oil imports in 2012 and 2013.

China GCC Co-operations Wide & Strong, in

Downstream SSTPC JV (SABIC & Sinopec in China)

Sinopec Exxon Aramco Fujian JV China Areas of

5 China GCC Co-operations Wide & Strong, in addition to Trading JVs in Petrochemical & Downstream SSTPC JV (SABIC & Sinopec in China) YASREF JV (Saudi Aramco & Sinopec in KSA) FPCL Sinopec Exxon Aramco Fujian JV China Areas of Cooperation Construction & Infrastructure Railways, Housing, etc. Project Contracting Refineries, Petrochemical Complexes, etc. Upstream Cooperation Oil & Gas Financial Sector Banking, Investments, etc. Culture & Tourism Significant Future Growth Potential Opportunities in Petrochemicals Value Chains and Downstream Industrial Sectors

6 China 12 th Five Year Plan for Refining & Petrochemicals 800 China Refining Capacity MMTPA 100 China Fertilizers Capacity MMTPA 600 MMTPA MMTPA China Ethylene Capacity MMTPA 100 China Polymers* Capacity MMTPA MMTPA MMTPA *Polymers include capacities of HDPE, LDPE, LLDPE, PP, and PVC only China has set strong capacity addition targets for refining, fertilizers, and petrochemical products for 2015 as a part of the China 12 th Five-Year Plan Sources: CNCIC

KSA & GCC Petrochemical Growths Outlooks Strong GCC Petrochemicals Capacity 2013 Total GCC Capacity = 137 Million Tonnes UAE 6% Kuwait 5% Qatar 15% 2020 Forecasted Capacity Share Total Capacity

7 KSA & GCC Petrochemical Growths Outlooks Strong GCC Petrochemicals Capacity 2013 Total GCC Capacity = 137 Million Tonnes UAE 6% Kuwait 5% Qatar 15% 2020 Forecasted Capacity Share Total Capacity Estimate = 191 Million Tonnes UAE 8% Kuwait 6% Qatar 15% Saudi Arabia 66% Oman 6% Bahrain 1% Saudi Arabia 65% Oman 5% Bahrain 1% Saudi Arabia holds the No.1 leadership position in the petrochemical and chemicals sector in the GCC. In 2013, Saudi Arabia held around two-third of GCC petrochemical total market capacity of about 90 million tonnes. Sources: GPCA, Arabian Oil & Gas

8 KSA Petrochemical Value Chain New Cooperation Opportunities Priority Industrial Clusters Minerals & Metals Automotive Plastics & Packaging Home Appliances Solar Energy Chemicals Value Chains Synthetic Rubber Chains Carbon Fiber Chains Ethoxylates and Amines Chains Polyurethane Chains Thermoplastic Chains Acrylic Chains Speciality Performance Chemicals Value chains Polyamide Chains Aluminum Chains Phosphate chains EPC Construction Equipment Supplies Industrial services Spare parts supply

9 Downstream Industrial New Cooperation Opportunities Supply & Manufacturing in KSA Machinery Equipments Auto Parts Electrical & Electronics Manufacturing Tires & Rubber Products Industrial Services EPC Construction SMEs Growth & Support Knowledge & Technology Transfer

Partnering with China: New Opportunities Promising Growth Outlook Potential Future Cooperation Good Strategic Growth Opportunities Petrochemical & Downstream

10 Partnering with China: New Opportunities Promising Growth Outlook Potential Future Cooperation Good Strategic Growth Opportunities Petrochemical & Downstream Value Chains Win-Win Partnerships Strengthen Bilateral Relationships Promote Mutual Development China & GCC are Strong Partners for Future Growth & Cooperation

11 Partnering with China: New Opportunities Thanks Yousef A Al Zamel EVP Corporate Strategy & Planning

Emergence of the Arabian Gulf as a Global Petrochemical Hub. Dr. Abdulwahab Al-Sadoun, Secretary General, GPCA

Emergence of the Arabian Gulf as a Global Petrochemical Hub Dr. Abdulwahab Al-Sadoun, Secretary General, GPCA Agenda Early Petrochemical Production Key Enablers Growth Trajectory Organic Growth Inorganic