Aramco PDF

Table of Contents
2011 Highlights
About Saudi Aramco
Citizenship Around the World
10
Chairmans Message and Presidents Foreword
12
Citizenship at Saudi Aramco
14

Economy

Enabling Entrepreneurship and Innovation

Developing Local Content

Building a Competitive Workforce in the Kingdom
22

Community

Promoting Community Health

Building a Culture of Safety

Targeting our Charitable Giving
30

Knowledge

Investing in Education

Inspiring Saudi Arabias Young People

Spreading Cultural Awareness
40

Environment

Enhancing Energy Efficiency

Protecting the Natural Environment

Raising Awareness for Environmental Protection

Developing Cleaner Energy Technologies
48
Our Outlook
| Aiming Higher | About this Report

Saudi Aramcos 2011 Annual Review and this companion publication, the
2011 Corporate Citizenship Report, continue our annual practice of reporting
on our operational, organizational, social, and environmental achievements
and goals. Our reporting has been informed by internationally-recognized
guidelines developed by the Global Reporting Initiative (GRI) and the
International Petroleum Industry Environmental Conservation Association
(IPIECA). These guidelines help us identify, structure, prioritize, evaluate and
present key issues that are relevant and meaningful to our stakeholders. For
past reports, please visit www.saudiaramco.com.
The Custodian of the Two Holy Mosques,

King Abd Allah ibn Abd Al-Aziz Al Saud
Saudi Aramco 2011 Corporate Citizenship Report
His Royal Highness Naif ibn Abd Al-Aziz Al Saud

The Crown Prince, Deputy Prime Minister,
and Minister of the Interior
2011
Highlights
2011 Highlights
2011
Highlights
Economy
Community
Knowledge
Environment
We support the Kingdoms growth and

prosperity by enabling entrepreneurship
and innovation, developing local content,
and building a competitive workforce.
We support our local communities

by promoting health and well-being,
building a culture of safety, and
targeting our charitable giving.
We foster knowledge in the Kingdom

by investing in education, inspiring
Saudi Arabias young people, and spreading
cultural awareness.
We encourage stewardship and innovation

by focusing on enhancing energy efficiency,
protecting the natural environment, raising
awareness for environmental protection, and
developing cleaner energy technologies.
90% of material procurement

spending awarded to local companies
21 workshops conducted by the Nursing

Department, with more than 1,000 nurses
from local hospitals attending
200 teachers attended a course on how to

use MITs Blended Learning Open Source
Science or Math Studies (BLOSSOMS) videos
in their classrooms
75% of service procurement spending

awarded to local companies
1,200 suppliers at the launch of the

Supplier Safety Management System
274 trainees participated in Waed, our
1.5 million visitors to the summer

Cultural Programs
17% decrease in the on-the-job motor

vehicle accident rate
entrepreneur development initiative
12,000 high school students and 2,400
5,907 employees participated in the
civil defense students trained with the Traffic

Safety Manual
Innovation Program
4,074 Saudi high school graduates and

vocational college graduates trained in the
Apprenticeship Program
32,300 students educated in traffic safety
350 teachers trained in the Teacher In-Service
by employees and submitted to the Energy

Conservation Innovation Tournament
Program to promote engineering education
Gas Operations reduced facility energy

intensity by 5%
35 Saudi Aramco-built government
50,000 mangrove trees planted along the
schools renovated
Arabian Gulf coast
25 high school students, including

13 female students, sponsored to attend
40% reduction in overall flaring level at NGL

facilities and 31% at gas plants
the Saudi Research Science Institute (SRSI)
by the Saudi Aramco Safety Simulator Trailer
45,000 students hosted as part of the
20,000 school kits provided by the School
School Visitation Program to the Saudi

Aramco Exhibit, a high-tech science museum
Kit Campaign
>1,800 energy efficiency ideas generated
196 schools visited by the Mobile Library
10,000 cubic meters of accumulated

sludge deposits cleared from the Jiddah
marine area
1,346 tons of paper, cartons, plastic, glass
and aluminum materials and 11,500 toner
cartridges collected for recycling
Back to Table of Contents
About
Saudi
Aramco
Worlds largest proven conventional

crude oil and condensate reserves of
259.7 billion barrels
9.1 million barrels of crude oil
production (average per day)
About
Saudi Aramco
About
Saudi
Aramco
3.3 billion barrels of crude oil

production (annual)
13.3% of the worlds crude oil
production
Worlds fourth-largest natural gas
reserves of 282.6 trillion standard
cubic feet (scf)
9.9 billion scf of gas production
(average per day)
3.6 trillion scf of gas production
(annual)
Downstream Accomplishments
8th largest refiner in the world with
worldwide refining capacity of 4.02
million barrels per day*
Worlds top exporter of natural gas
liquids (NGL)
(* including domestic refineries, and domestic and
international joint and equity ventures)
he Saudi Arabian Oil Company

(Saudi Aramco) is the state-owned oil
company of the Kingdom of Saudi Arabia.
As a fully integrated, global petroleum and
chemicals enterprise, we are a world leader in
exploration, production, refining, distribution,
shipping and marketing.
We report to the Supreme Council for Petroleum and
Minerals Affairs, chaired by the Custodian of the Two
Holy Mosques,King Abd Allah ibn Abd Al-Aziz Al Saud.
The council sets the companys overall direction.
To accomplish its mission, Saudi Aramco is organized
into key business areas, each headed by a member
of corporate management.
Headquartered in Dhahran, Saudi Arabia, Saudi Aramco
and its subsidiaries have offices throughout the Kingdom.
We also have offices in North America, Europe and Asia.
Our subsidiaries and affiliates are located in Saudi Arabia,
China, Japan, India, the Netherlands, the Republic of Korea,
Singapore, the United Arab Emirates, the United Kingdom
and the United States.
Board of Directors
Seated, from left: H.E. Dr. Khaled S. Al-Sultan, H.E. Dr. Abdul Rahman A. Al-Tuwaijri, H.E. Dr. Ibrahim A. Al-Assaf,
H.E. Ali I. Al-Naimi, Khalid A. Al-Falih, and H.E. Dr. Mohammed I. Al-Suwaiyel. Standing, from left: Abdulaziz F. Al-Khayyal,
Peter Woicke, Sir Mark Moody-Stuart, David J. OReilly, Salim S. Al-Aydh, Amin H. Nasser
Our Operations
Citizenship Around the World

Saudi Aramco understands that our long-term success depends on
being a good citizen everywhere we or our affiliates do business.
About
Saudi
Aramco
About
Saudi
Aramco
Upstream: Applying new knowledge and skills to meet future energy needs
Exploration
Finding additional oil and gas reserves is one of our highest priorities. Using the latest technology, our
geoscientists continually seek new sources of oil and gas on land and offshore, throughout the Kingdom.
Oil Operations
We strive to optimize production from our oil fields, which are among the largest in the world. Most
production comes from fields in the coastal plains of the Eastern Province, an area extending 300 kilometers
north and south of Dhahran.
Gas Operations
We are working to increase supplies of gas for domestic energy, powering desalination plants and
other industries, and as a vital feedstock for our growing petrochemical industry.
Downstream: Contributing to the nations prosperity in ways that are tangible, valuable
and sustainable
Refining and
Petrochemicals
As we strive to become the worlds leading petrochemical company, we continue to integrate our refineries with petrochemical plants, build new facilities and collaborate with leading global chemical companies. Our investment in refining and petrochemical production capacity is a key driver of industrialization and job creation in the Kingdom.
Transportation
and Distribution
Our extensive network of ships and pipelines delivers our products to bulk plants and terminals throughout the Kingdom. From these strategically located distribution points, we and our affiliates safely and
reliably deliver natural gas and high-quality refined products domestically, and crude oil and natural gas
liquids (NGL) to customers around the globe.
Looking ahead, the integration of rail infrastructure into our distribution system will enhance safety on
the highways while supporting the Kingdoms economic growth.
Our People: Working together to support the company, its employees, communities,
and customers
Workforce
We attract and retain a world-class workforce, provide job opportunities for Saudi nationals, and encourage
the Saudization of our contractor workforce, in line with applicable laws and regulations.
Knowledge,
Training, and
Development
We invest in increasing the skills and leadership capabilities of our employees, as well as providing
educational and vocational opportunities for people throughout the Kingdom. In our quest to develop
the Kingdoms knowledge economy, we also invest in research, development and innovation.
Safety and
Health
We recognize the safety risks inherent in our business, and we are dedicated to protecting and promoting the health and safety of our employees through our industrial safety programs and world-class
health-care system.
Saudi Aramco
Communities
We manage residential communities, schools and community services for our employees. We
design communities that are safe, vibrant, and promote a sense of well-being for our employees
and their families.
USA
Global Reliability Forum Aramco Services Co.
hosted the inaugural Saudi Aramco Global
Reliability Forum to share information on
innovative technologies and best practices in
reliability. Attendees represented major oil and
chemical companies committed to ensuring
reliable supplies of energy now and in the future.
Road to Success Our Road to Success

orientation program for Saudi Aramco-sponsored
students studying at U.S. universities addresses
issues such as cultural awareness, campus life,
personal and driver safety, and time management.
Museon Museum Aramco Overseas Co.

sponsored the Geology and Technology
exhibition at the Museon Science and
Technology museum in The Hague. The exhibit
opened in June 2011.
Womens Leadership We have sponsored

the Womens Global Leadership in Energy
& Technology Conference for seven years.
The 2011 keynote was delivered by Huda
Al-Ghoson, the General Manager of Saudi
Aramcos Training and Development organization.
Oxford Energy Seminar Aramco Overseas Co.

sponsored the 33rd Oxford Energy Seminar at
St. Catherines College at the Oxford Energy
Institute. One hundred of the worlds energy
leaders attended.
Museum of Fine Arts Aramco Services Co.

sponsored the exhibition Gifts of the Sultan:
The Art of Giving at the Islamic Courts, held
at the Museum of Fine Arts in Houston. More
than 200 pieces of art comprised a unique
collection that explored the universal tradition
of gift-giving and its significance to Arab culture.
Houston Half Marathon For the seventh

consecutive year, Aramco Services Co. employees
lent their support to various charities by
participating in the Aramco Houston Half
Marathon. The multi-race running event, which
includes the Chevron Marathon and the El Paso
5K Run, all under the Run for a Reason program,
raised a total of $2.1 million for 52 charities.
The Future is Green Aramco Overseas Co.

hosted The Future of Green seminar at the
NEMO Science Center in Amsterdam as part of our
Go Green! environmental awareness campaign.
Europe
Innovation Symposium Aramco Overseas Co.

held its first European Technology Quest
Innovation Symposium in Aberdeen, Scotland,
bringing together experts in the field to
investigate solutions to 21 specific challenges
in several research domains, including
computational modeling, geophysics, geology,
production, drilling and reservoir engineering.
University Visit Chemistry students from
the University of Amsterdam spent a full day
at Aramco Overseas Co. headquarters in the
Netherlands learning about the research and
development of functional materials from the
Research and Technology unit.
Asia
An Evening of Saudi Arabia Aramco
Overseas Co. hosted a cultural event titled
An Evening of Saudi Arabia in Shanghai,
China, to introduce the history and culture of
the Kingdom, and strengthen the companys
relationship with its local associate university,
Tongji University.
Earthquake Relief On a visit to Tokyo

on March 22, Khalid Al-Falih, Saudi Aramco
President and CEO, announced that the Saudi
Government had instructed Saudi Aramco to
deliver a $20 million donation on its behalf
to Japan to provide propane for victims of the
earthquake and tsunami. The donation provided
$400 subsidies per household per month to
cover propane costs. By the end of October,
about 52,000 families in temporary households
were receiving the subsidy.
Ramadan Gifts Employees from Saudi

Aramcos shipping subsidiary, Vela International
Marine Limited, participated in the distribution
of more than 100 gift boxes among the needy
people of Dubai during the holy month of
Ramadan. Vela has also donated computers,
printers, mobile phones and other useable
devices to the Green Foundation in Dubai for
recycling and reuse.
Chairmans Message
audi Aramco has always considered the well-being of its local communities
and stewardship of the environment as central to its organizational mandate.

We have always strived to be a catalyst for the development and diversification of
the domestic economy.
This commitment was first manifested decades ago when the company helped build some of
the Kingdoms first roads, schools, airports, health-care facilities, railways and power stations.
In 2011, I was proud to see our impact become both broader and deeper. Beyond the initiatives
that are readily visible the many valuable educational programs, cultural initiatives, and
health and environmental awareness campaigns sponsored by the company Saudi Aramco
is finding new ways to help improve the economy of the Kingdom.
This was particularly apparent in our 2011 downstream activities. The continuing transformation
of our downstream portfolio continues in its overall objective to create jobs. These will be
generated in the company, its affiliates and service providers, but also in the conversion,
manufacturing and service clusters built around our integrated refining and chemical facilities.
Saudi Aramco is the source of most of the Kingdoms national revenue, as well as the sole
supplier of petroleum fuels and feedstock to its industries (including petrochemicals, which
represent about 10 percent of our nations gross domestic product).
Going forward, the petrochemical products created by Saudi Aramcos joint ventures have
been selected not just for their potential to generate profit, but also for their ability to develop
new industries in the Kingdom.
Beyond creating jobs, I am sure that these activities which rely not just on energy, but on
knowledge for their success will help nurture the growth of a knowledge-based economy
in the Kingdom.
In short, I believe that Saudi Aramcos domestic social and economic contributions do not
come at the expense of its focus on its global competitiveness and profitability. Instead,
these factors complement one other, and are essential for long-term business success and
sustainability. This 2011 Corporate Citizenship Report describes some of the many ways in
which our contributions to the Kingdom and the communities in which we operate have
progressed in 2011.
Ali I. Al-Naimi
Minister of Petroleum and Mineral Resources
Chairman of the Board of Directors
10
Presidents Foreword
t Saudi Aramco, we are undergoing a remarkable UPSCALING in how we
practice corporate citizenship. In addition to our traditional community and outreach

initiatives, our decision making increasingly incorporates an awareness that the
broad sustainability and indeed the vibrancy of the communities in which we operate, the
health of the natural environment, and our own performance as a company go hand-in-hand.
When viewed in this context, it is clear that citizenship is not a matter of nice-to-have charitable
activities, but rather of initiatives that provide real returns for the enterprise: They are driven not
just by benevolence, but by good business sense. Good corporate citizenship demands that we
focus simultaneously on maintaining efficient and cost-effective petroleum operations; targeted,
strategic investments in local economies and communities; and responsible environmental stewardship. In my mind, prosperity and responsibility coexist as central aspects of our business
model.
This is true not only for Saudi Aramco, but for our whole industry. The petroleum industry is
experiencing a renaissance demand continues to grow, and the applications of our products
are continually broadening. People around the world will continue to rely on petroleum for
decades to come. Rather than the supply scarcity that many predicted, the planet has adequate
oil and gas supplies, due in large part to our industrys ingenuity in continuously unlocking
new resources. That also means the world now has even more time for the gradual but
meaningful development of renewables, and for them to overcome technical, economic,
environmental and consumer acceptance obstacles.
But this renaissance must be characterized by more than growing profits. It should be an era in
which we, as an industry, fulfill our commitments to humanity by helping raise and sustain quality of life across the globe while meeting our obligations to the natural environment. I believe
this is our higher purpose as energy providers. The degree to which we are able to achieve this
aim will not only shape our industrys fortunes, but will help to determine the condition of our
fellow human beings for many decades to come.
With this in mind, I am very pleased to present our third annual Corporate Citizenship Report. This
report allows us to share with our valued stakeholders the progress we have made on our journey
toward fulfilling this higher purpose.
Khalid A. Al-Falih
President and Chief Executive Officer
11
Citizenship
at Saudi
Aramco
Citizenship at Saudi Aramco
Citizenship
at Saudi
Aramco
Progress in 2011
ince before corporate citizenship had a name, Saudi Aramco
has strived to build a national infrastructure and provide wider

opportunities for a better life among the people of Saudi Arabia.
This way of thinking about our business and its role in society has always
been central to our decision making and culture.
Underlying our approach to citizenship has

been a recognition of the interdependency
between business success and social and
environmental well-being. When we promote
local manufacturing of goods and procurement of services from local suppliers, we
help local economies grow and diversify,
supporting the creation of new jobs and vibrant, productive and resilient communities.
When we provide meaningful training to
local workers, transfer technology, share
expertise and best practices, and undertake
research and development programs locally,
we are rewarded by an increased ability to
find excellent candidates for key positions
Our Commitment:
To be an influential
leader in creating
sustainable social and
economic opportunities
for the welfare of the
Kingdom and in other
locations where our
affiliates do business.
| Aiming Higher |
Our Citizenship
Reporting Journey
within our company. When we invest in

cleaner energy technologies, we enhance the
environmental sustainability of our business,
while expanding into new markets.
In recent years, Saudi Aramco has brought
increased focus and dedication to achieving
excellence in our practice of citizenship and
its integration into more aspects of our
business. This has been marked by the
creation of a formal corporate citizenship
division and an annual report dedicated to
this important topic.
Economy
Our impact on the Kingdoms economy continues to grow in breadth and depth. Saudi
Aramcos new entrepreneurship center,
Waed, along with our internal innovation
program, supported a burgeoning national
culture of entrepreneurship and innovation.
Our procurement targets to increase local
content and manufacturing, as well as our
other methods of engaging suppliers, had
enormous impacts on supply chains in the
Kingdom. Our many training and development programs, both for employees and for
non-employees, supported the creation of a
more competitive Saudi workforce.
Community
SAUDI ARAMCO CORPORATE CITIZENSHIP '09
Saudi
Aramco
Citizenship
2010
1
2009 Corporate Citizenship

Review: As our first publication
devoted to citizenship, the
Review surveyed almost 80
years of our contributions to
the Kingdom.
12
As demonstrated by this Corporate Citizenship

Report, as well as its companion Annual
Review, 2011 was a remarkable year at Saudi
Aramco. The company experienced remarkable growth and expansion, coupled with
high levels of productivity and innovation.
Our citizenship strategy and activities were
equally dynamic. Here is a brief glance of
the activities we describe in this report:

Report: As our first full-length
report, this second annual
publication focused on the
years performance, with a
detailed selection of performance metrics, more specific
strategic orientation and
detailed program information.

Report: This years report
continues in the tradition of
the 2010 report by focusing
on metrics, emphasizing the
years key achievements,
and reporting progress on key
long-term initiatives.
Saudi Aramco continues to play its well-established role in the communities where we
do business. Our numerous campaigns and
events encouraged greater health, well-being
and safety. We also continued to examine
the way in which our charitable giving is
designated, continually looking for ways
to enhance the social and environmental
impacts of all company grants and sponsorships. We developed an in-Kingdom donation
strategy that aims to have a portion of our
charitable giving go toward programs that
are aligned with Saudi Aramcos four pillars
of citizenship.
Aiming Higher
Knowledge
Our activities to promote knowledge, education and awareness took increasingly
ambitious forms in 2011. We invested considerable resources and talent in supporting
better education for students of all ages,
continued to develop an ambitious new initiative to inspire the Kingdoms youth, and
continued the construction and development
of the King Abdulaziz Center for World Culture,
a landmark facility to be located adjacent
to our corporate headquarters in Dhahran.
Environment
Environmental management and stewardship
play a central role in the way we conduct
our core operations and plan for the future.
In 2011, several new and ongoing initiatives
supported a focus on enhancing energy
efficiency, protecting the natural environment,
and increasing environmental awareness.
We also continued to leverage our advanced
research and technological capabilities to develop a variety of cleaner energy technologies.
Our progress as a corporate citizen

is a continuing journey, and while we
look back on our achievements with
pride, we look to the future determined
to improve and aim higher.
We are guided in this by a strategy
based on four principles:
Build on our core business strengths.
Doing what we do best to maximize
our positive impact on society.
Respond to the needs of society.
Each of our programs is based on clearly
defined needs within the communities in
which we operate and on the objectives
of the Kingdom as a whole.
Create strategic collaborations.
Working with others builds scale and
optimizes outcomes, allowing us to
leverage shared values and complementary strengths of other organizations.
Evaluate our performance
on an ongoing basis.
We continue to review all of our
corporate citizenship activities against
a rigorous framework to ensure they
remain relevant to our core business
objectives and the communities in
which we operate.
13
274
709
90%
$23.1
young entrepreneurs trained through Waed,

our entrepreneur development initiative
Economy
Overview
Saudi employees hired
of material procurement needs

and 75% of service procurement
needs met by local suppliers
billion in material and service procurement
spending awarded to local companies
Economy
Overview
n recent decades, the Saudi economy has enjoyed a period of
prosperity and stability. However, there are many economic challenges

in the Kingdom that must be addressed. Many of these have become
more urgent because of continuing volatility in the global economy and the
geopolitical arena. As a global energy supplier, Saudi Aramcos business has
a significant macroeconomic impact, which affects the growth and direction
of the Kingdoms economy.
But beyond being a contributor, we are also a

dependent. Our ability to thrive is intrinsically
linked to the development of the Kingdoms
economy, the creation and nurturing of
transformative ideas, and our capacity to
deliver in an unpredictable global economy.
Some of the most pressing national economic issues include high unemployment,
particularly among young people, unbalanced
representation of Saudi nationals in the
workforce, a shortage of people with the
skills that will help us meet market needs,
and underutilization of Saudi businesses as
preferred suppliers and manufacturers.
To address these challenges, the Kingdoms

chief priorities are to stimulate economic
growth and diversification by promoting local
production of goods and services, to support
locally-based manufacturers, to create jobs
for Saudi nationals, and to ensure the Kingdoms young people are equipped with
skills that will allow them to participate in
the growth of the economy.
In 2011, Saudi Aramco continued to invest
in the Kingdoms abundant resources, young
labor force, and ample infrastructure by
enabling entrepreneurship and innovation,
developing local content and building a
competitive workforce.
As a global energy supplier, Saudi Aramcos business

has a significant macroeconomic impact, which affects
the growth and direction of the Kingdoms economy.
14
15
| Aiming Higher |
Innovating for the Future:
The Corporate Venturing Program
To accelerate the development of new technologies at start-up firms, we created the
Corporate Venturing Program to identify and
invest in cutting-edge technologies. The
program will invest in early- and growthstage technology companies in the areas of
upstream oil and gas operations, downstream operations, alternative energies and
energy efficiency. The Corporate Venturing
Program will be fully launched in 2012 as
Saudi Aramco Energy Ventures (SAEV), a
wholly owned subsidiary of Saudi Aramco.
16
ntrepreneurship and innovation are key contributors to job
creation and economic diversification, and the Kingdoms future economic

success will require creative and ambitious investment strategies in
both areas. This understanding led to the launch of our entrepreneur development initiative last year. Following a successful pilot phase, the Saudi
Aramco Entrepreneurship Center was officially launched under the Arabic
name Waed, or Promising in English.
Male and female entrepreneurs who are
not Saudi Aramco employees can present
their ideas for new ventures by completing
a form on the companys website. To be
accepted, the idea must be creative, innovative and have the potential to create
jobs. Successful applicants undergo intensive training with Waed specialists, who
assist the entrepreneurs with business
plans, due diligence and financing. In 2011,
Waed completed its fourth tranche of
training workshops, bringing the total
number of prospective entrepreneurs routed
through the program to 274, including 73
female entrepreneurs.
As a result of its early success, Waeds portfolio of services was recently expanded by
the Board of Directors, which approved the
creation of Waed Ventures as an equity
investment arm of Waed. The new entity
will invest in small- and mid-sized Saudi
enterprises to promote local economic growth
and diversification. By 2017, Waeds goal is
to fund 20 ventures annually. In addition, it
aims to attract 850 applicants, train 250 applicants, and complete 150 business plans
annually. It is our hope that Waed will expand the Kingdoms pool of entrepreneurs,
encourage development of an entrepreneurial ecosystem, and provide debt financing
for small- and mid-sized business ventures
in Saudi Arabia
Collaborating with King Fahd University of
Petroleum and Minerals (KFUPM), Saudi
Aramco is helping to develop Dhahran
Techno-Valley (DTV), a major undertaking
initiated by KFUPM in 2006. DTV provides
development, production and marketing
support services for innovation originating
from academic research, and infrastructure
that will foster the growth of industrial
research and development in the Kingdom.
Its aim is to be a leading research and technology nucleus, creating a space where
both industry and academia can collaborate
and thrive an environment that will be a
catalyst for technical innovation. So far, 20
companies have dedicated research centers at
159
85
02 03 04 05 06 07 08 09 10 11
Employee participation in the

Innovation Program
Number of patents per year

(cumulative)
While we value collaboration with others,

we do not take for granted the wealth of
inspiration and innovation that exists within
our company. Since 2002, our Innovation
Program has captured game-changing ideas
generated by our own employees. In 2011,
a total of 5,907 employees submitted 12,978
ideas through the program, of which 1,240
were approved and 690 were fully implemented. Employee enthusiasm for the program is
shown by the increasing number of submissions and participants. We recently introduced a state-of-the-art software program
to facilitate the submissions and review process. Since the program began in 2002, more
than 100,000 ideas have been submitted.
To ensure that selected ideas are yielding
results, Saudi Aramco takes a systematic approach to managing the idea and innovation
pipeline, with a structured process to review
the ideas implementation plans and progress.
Enabling
Entrepreneurship
and
Innovation
64
02 03 04 05 06 07 08 09 10 11
the DTV, including Schlumberger, Halliburton,

Baker Hughes, General Electric, Honeywell,
Yokogawa and many others.
Economy
52
46
33
25
21
Enabling
Entrepreneurship
and Innovation
94
128
5,907
5,771
5,017
4,932
5,041
4,533
4,718
3,587
1,626
Enabling
Entrepreneurship
and
Innovation
2,900
Economy
new ways to improve the design, efficiency

and utilization of stationary equipment,
leading to reduction in ownership cost. A
total of 1,327 ideas were received.
To ensure a continuous flow of high-value
ideas, three new courses on innovation
were introduced during 2011. The courses
covered such topics as methodologies for
evaluating ideas, improving affordability,
and inventive problem solving.
| Aiming Higher |
Building intellectual capital and capacity
In 2011, Saudi Aramcos corporate patent portfolio grew by 24 percent. Contributing to this
achievement were the filing of 208 patent applications at international patent offices and
31 patents granted by the U.S. Patent and Trademark Office. The number of newly filed patent
applications represents the highest one-year growth since the inception of the companys intellectual assets protection program. Saudi Aramco has been granted 159 patents in total. We aim
to continue our upward trajectory of innovating for the future, focusing even more intently on
the value, not quantity, of the inventions being patented.
In 2010, we launched an Innovation Tournament to capture ideas based on a designated

theme or challenge. Following the success
of the first event, we held a second tournament, in September with the theme, Asset
Reliability: Improvement toward Operational
Excellence. The challenge was to explore
17
| Aiming Higher |
Encouraging a Responsible Supply Chain
Developing
Local Content
here is tremendous potential yet to be realized in our local
Saudi businesses, and Saudi Aramco is supporting local suppliers,

manufacturers, and other local service providers to help them achieve
that potential. We recognize that a strong local market for goods and services
benefits our supply chain with the introduction of new products. Having local
suppliers and manufacturers also offers lower transactional costs.
To support this objective, we are preparing

to open in 2012 a local content office for
Saudi Aramco at the Asharqiyah Chamber of
Commerce to help develop Saudi businesses.
In 2011, 75 percent of our service procurement needs and 90 percent of material
procurement needs were met by local suppliers. Twenty-two percent of our material
procurement needs were met through
goods manufactured within the Kingdom
and we aim to increase this to 70 percent
by 2020.
Saudi Aramco is actively encouraging the

Saudization (an increase in the percentage
of workforce made up of Saudi nationals) of
its manufacturers. To that end, we organized
a Local Manufacturers Forum in June,
which was attended by more than 900 participants from 350 Saudi manufacturing
companies, the Ministry of Labor and the
Asharqiyah Chamber of Commerce. We shared
with the participants our new Saudi Manufacturer Premium, designed to increase
opportunities for Saudi manufacturers to
We, as a large and successful company with such diverse capabilities, reflect a wide network of
organizations and departments. Because of this, we should utilize our status as a role model in the
area of supply chain management within the GCC region.
Nabilah Al-Tunisi, Manager of the Material Planning and Systems Department, at the annual
meeting of the Gulf Cooperation Council (GCC) Supply Chain Committee hosted by Saudi Aramco
18
2,200
1,225
2,157
2,189
1,419
1,331
2,194
1,366
2,086
$26.0
$19.5
$16.4
07 08 09 10 11
07 08 09 10 11
07 08 09 10 11
Amount awarded
to local companies
(in billions)
Amount awarded
to local companies
(in billions)
Number awarded
to local companies
participate in the companys business. Local

manufacturers who comply with the required
Saudization level will be eligible for a 10
percent premium based on an approved
Saudization Plan. Manufacturers should have
a minimum of 20 percent Saudization with
a plan to increase Saudization by five percent every year to reach a minimum of 45
percent Saudization by 2016. Foreign enterprises and investors owning up to 100 percent
of qualified manufacturing businesses in
Saudi Arabia also will be eligible for the enhanced allowances. The goal of this strategy is
to promote fuller employment and economic
and social development in the Kingdom
while also providing a more transparent and
reliable environment for new investors in
Saudi services and industry, including foreign
direct investment.
We are also creating opportunities through
our Local Manufacturers Development
Program, which has secured 10-year procurement agreements for valves, flanges and
other fittings from local sources. We continue
to pursue additional long-term purchase
agreements to encourage growth of specific
manufacturing businesses in the Kingdom
and the construction of new factories.
Economy
Developing
Local Content
$12.0
$15.4
$12.7
$19.3
$14.1
$18.9
$4.0
$3.6
$3.6
$3.1
$2.5
Service contracts
awarded (total)
1,368
Service procurement
spending awarded
(total, in billions)
$24.3
$5.2
$2.2
$2.5
In October, we launched a new safety awareness campaign for contractors and

suppliers, and introduced a Supplier Safety Management System as the minimum
standard to which all our suppliers must adhere. The launch event was attended by
more than 1,200 people, representing owners and executive management of our
key suppliers and manufacturers. We began on-site inspections of contractor facilities
to ensure compliance with both safety and health regulations.
$4.8
Developing
Local Content
$5.0
Economy
Material procurement
spending awarded
(total, in billions)
$4.5
A key mandate of corporate citizenship is to lead by example and encourage

responsible business practices. Saudi Aramco has initiated several actions to reinforce
best practices in supply chain management to help our local partners. At a series
of seminars for suppliers and contractors, we launched the new Supplier Code of
Conduct, which provides mandatory guidelines that promote ethical business
practices, behaviors and attitudes for all current and prospective suppliers.
We have also supported an effort to attract

businesses to the Kingdom by helping secure
land in industrial cities and in Ras Al-Khair,
north of Jubail, assisting businesses in finding qualified Saudi employment candidates,
and by pairing relocating businesses with
local suppliers and manufacturers to build
relationships and expand the capabilities of
local enterprises.
We began an evaluation of the companys
drilling work and its costs, with an eye
toward localizing this industry. We see opportunities in the manufacture of drilling
rigs and platforms, rig parts and materials,
and the production of downhole chemicals
and fluids. At the same time, we are evaluating opportunities in offshore and marine
services and dry docks, considering ways to
make the best use of our seafront access and
spending in Ras Al-Khair. We envision the
development of local industrial clusters to
engage in the manufacture, maintenance and
operation of offshore boats, barges and accommodation platforms. Our aim is to create
a broader base of revenue-generating activity
by extending our operations throughout the
petroleum value chain, and encouraging
development and scaling up of other in-Kingdom industries.
Given its unique hydrocarbons

endowment, the Kingdom in
general and Saudi Aramco in
particular have an unrivaled
opportunity to develop a vibrant
energy-service industry and at
the same time address part of the
Kingdoms employment challenges.
Allowing businesses to become
established will provide technical
and professional jobs, and excellent
long-term career opportunities for
Saudis will be created.
Nassir S. Al-Yami, Manager of the
Competitive Saudi Energy Sector Initiative
19
The new workforce is different in many ways. They arrive armed with
BlackBerrys, iPads, iPhones and other gadgets. They are plugged in
24 hours a day, seven days a week. They have high expectations of
their employers, look for new challenges and are not afraid to question
authority. We need to be ready to assimilate them within our workforce
Economy
Building a
Competitive
Workforce
in the
Kingdom
Building a
Competitive
Workforce in
the Kingdom
by providing challenging tasks, meaningful work and a solid learning curve.
Economy
Looking Forward
We should also capitalize on those features and behaviors for the benefit
of the company.
Nasir K. Naimi, Executive Director of Pipelines Distribution and Terminals
ncreasing the percentage of Saudi nationals in the workforce,
especially considering the high unemployment levels among young

Saudis, is a priority for Saudi Aramco given its influence in the Kingdoms
economy. We have actively supported the governments Saudization strategy to make certain a stable and productive domestic workforce is available
to contribute to the Kingdoms economic growth. We have made progress
by implementing policies that integrate and enhance our contractors
Saudization processeses. Believing that our greatest reserves are our talented
young people, our recruitment activities are intended to attract the most
qualified Saudi nationals.
In 2011, we were successful in hiring 709
new Saudi employees. Eighty-seven percent
of Saudi Aramcos 56,066 employees are
Saudi nationals.
To better align our training program with

market needs, we worked with the advisory
committee of the Saudi Petroleum Services
Polytechnic, a vocational training institute
in Dammam, to customize a curriculum for
Polytechnic students that adds a hands-on
element to the learning environment. To
enhance the learning experience, we drilled
an 834-foot well as a training aid. We also
plan to purchase and install a state-of-theart training rig to simulate drilling operations
for the students.
A competitive workforce also includes developing the skills and competencies of women
in the workforce. In 2011, 206 women
participated in Saudi Aramcos Women in
Business Program. Saudi Aramco organized
workshops in Ras Tanura, Riyadh and Jiddah
designed to enhance the skills of Saudi private sector businesswomen. The program,
New Approaches to Leadership for Women

Entrepreneurs, Managers and CEOs, was
coordinated by Entrepreneur Ventures Inc.
and the MIT Sloan School of Management. It
was designed to help participants to think
systematically and strategically about leading
a growing organization and sustaining success
in a rapidly changing business environment.
In addition, Saudi Aramcos Dhahran Womens
Group hosted the first Womens Conference
in December that brought together 250 Saudi
and expatriate women, as well as a roster
of domestic and international speakers.
In December, Saudi Aramco participated
in laying the foundation for the National
Industrial Training Institute (NITI) in Al Hasa
(pictured above right). A joint project of
Saudi Aramco and the Technical & Vocational
Training Corporation, NITI will offer Saudi high
school graduates a two-year technical training program to prepare them for jobs in the
energy sector, including petrochemicals. NITI
will contribute to building a skilled Saudi
workforce, reducing unemployment and
supporting the Kingdoms Saudization efforts.
Looking Forward
| Aiming Higher |
Young Saudis receive on-the-job-training at Saudi Aramco
Since we view young people as the Kingdoms greatest asset in securing our future,
our Apprenticeship Program aims to prepare ahem for successful careers. In 2011,
the program trained 4,074 Saudi high school graduates and vocational college
graduates. As we prepare them, we also prepare the company. Saudi Aramco is
challenged by an aging workforce with up to 50 percent of our workforce due to
retire during the next few years increased job growth due to new downstream
activities, and an expanding international presence.
In these challenges, however, we see the opportunity to harness the energy and
ambition of our young people, and the experience and knowledge of employees
who have contributed to the success of Saudi Aramco, to shape a greater future for
the company and its people.
Our Apprenticeship Program aims to provide the kind of stimulating work environment, mentoring, and meaningful opportunities that inspire and empower. All
apprentices go through an on-the-job-training program, offering specific training
for a specific plant and piece of equipment. Apprentices receive a minimum of
18 months of training and 50 hours of safety training.
Our commitments for 2012 and

beyond include:
Funding 20 entrepreneurial ventures

that have completed the Waed program
Fully launching Saudi Aramco Energy

Ventures (SAEV), a wholly owned
subsidiary of Saudi Aramco
Establishing
a project incubator at
the King Fahd University of Petroleum
and Minerals
Meeting
82 percent of our services

procurement needs and 94 percent of
our materials procurement needs through
local companies by the end of 2012
Meeting
30 percent of our material

procurement needs through goods
manufactured within the Kingdom
by the end of 2012 and 70 percent
by 2020
We have started ambitious programs to sponsor young female students

in fields that have not been common traditionally. We are also hiring
more women than ever before to improve diversity in the workplace and
focus on developing female leaders.
Striving for a Saudization rate in our

contractor workforce of 40 percent
in the services sector and 18 percent
in the construction sector by the end
of 2012
Samir A. Al-Tubayyeb, Vice President

of Employee Relations and Training
20
21
1.5
35%
17%
82
million people attended

the summer Cultural Programs
Community
Overview
decrease in
community fires
Community
decrease in the on-the-job motor

vehicle accident rate
medical facilities received development
support from SAMSO
Overview
he well-being of the communities in which we operate has been
of paramount importance to us since we began operations almost 80

years ago. We rely on safe, vibrant and inclusive local communities for
the future health and prosperity of our society. In our community programs
and outreach events this past year, we focused our efforts on promoting
community health and building a culture of safety.
Our health and safety programs are designed
to address the communities most pressing
needs and the Kingdoms social development challenges. They deal with community
health needs such as improved delivery and
quality of medical care, raising awareness
of healthy lifestyle choices beginning in
early childhood, and the dangers of smoking.
Saudi Aramco hosted a variety of support
programs and events to engage community
members of all ages in educational activities
and family festivals.
We also continued to reinforce a culture of

safety in our communities. Road safety
remains a key priority, as auto accidents
are a leading cause of death in the Kingdom.
The hazards and devastating consequence
of fires, a growing problem in the Kingdom,
also were featured in our safety awareness programs.
We depend on vibrant, inclusive local communities

for the future health and prosperity of our society.
22
23
Children learn how to stay safe in the

streets at the Traffic Safety Garden.
Community
Community
Promoting
Community
Health and
Well-being
Promoting
Community
Health and
Well-being
There is something for everyone in our community from

the pioneering program iSpark, engaging youth in fun, science,
videogame design and documentary filmmaking, to childrens
Promoting
Community Health
and Well-being
shows, health and safety awareness, heritage exhibits, and

he health of our employees, their families and the people in
our communities is a priority for Saudi Aramco. Since 1933, Saudi

Aramco has provided medical care to employees and their families.
As part of our continued commitment to providing quality health care,
Saudi Aramco is developing a Health Care Business Model to improve the
delivery and quality of medical care. We aim to set the standard for an
improved health-care delivery model for the Kingdom.
To bring quality nursing care to a broader
group of patients, Saudi Aramco Medical
Services Organization (SAMSO) created a
Nursing Outreach Program that helps local
hospitals implement our best-practice model.
Our Nursing Department conducted 21
workshops, attended by more than 1,000
nurses from local hospitals. SAMSO nurses
also made consultancy visits to four community hospitals. As a testament to our
quality improvement efforts, our nursing
program has been recommended by the
Saudi Arabian Central Board of Accreditation
and accepted by the Saudi Arabian Ministry
of Health (MOH) to be implemented in all
MOH hospitals.
24
As part of our continuous improvement

efforts, SAMSO conducted staff and customer surveys again in 2011. SAMSO also
held extensive workshops with employees
from all departments to discuss the survey
results and solicit feedback and recommendations. To improve communication with
customers, SAMSO has held nine Community
Health Care Forums. These forums have
opened a dialogue that allows the organization to explain the concept of a patient-SAMSO
partnership, give and receive feedback, and
hear ideas from customers.
SAMSO also works outside its health-care

facilities to promote health and wellness
in the community. Our school health promotion initiative for seventh- to ninth-graders
in Saudi Aramco-built government schools
provides information about life skills, physical
activity, nutrition, tobacco use, safety behavior, as well as a screening program for height
and weight, body fat and blood pressure.
Now that the program has been successfully piloted, it will be rolled out over the
next five years and then turned over to the
Ministry of Education.
Recognizing that smoking is a major health
issue in our society, a number of Saudi
Aramco organizations have launched antismoking campaigns. Our facility in Tanajib, in
the Eastern Province of Saudi Arabia, created
a campaign to coincide with International
Anti-Smoking Day. In conjunction with SAMSO,
local government authorities, and the local
hospital, Saudi Aramco employees and more
than 120 students from the region campaigned to spread awareness of smoking risks.
theater experiences designed to provide education and entertainment at the same time.
Nasser A. Al-Nafisee,
General Manager of Public Affairs
| Aiming Higher |
Cultural Programs reach a record 1.5 million attendees
In summer 2011, a record 1.5 million people attended Saudi Aramcos Cultural
Programs throughout the Kingdom. We cooperated with government agencies,
international organizations and individuals, as well as local clubs and communities,
to put together engaging activities that appeal to people of all ages. Programs
included arts, culture, heritage, education, sports and entertainment events, as well
as safety and health awareness sessions. More than 1,000 Saudi Aramco volunteers
contributed 100,000 hours to making the event a success.
In addition, the iSpark program kicked off in 2011 with 1,600 students taking
courses in multimedia, science, and technology.
Another highlight of Saudi Aramcos summer Cultural Program was the International
Sports Academy. The academy for children ages 714 encouraged physical activity
and gave a glimpse of what it takes to become a major football star. In similar
programs hosted by six Saudi Aramco-built government schools, students aged
1517 also had the opportunity to attend soccer training sessions. In total, Saudi
Aramco sports programs attracted 1,560 youth.
25
71
109
112
| Aiming Higher |
Saudi Aramco advocates for fire prevention
Community
Building a
Culture of Safety
09 10 11
Number of
Community Fires
Building a
Culture of Safety
The United Nations General
the safety of our employees, their families and our broader community.
A culture of safety is supported inside the company and promoted in
our communities through a variety of initiatives that tackle our societys
most critical safety challenges. Traffic safety and fire prevention were the
two most critical safety threats on which we focused in 2011.
In 2011, through TSSPs focused efforts on

the four Es of traffic safety Engineering,
Education, Enforcement, and Emergency
Care the latest reports by the Traffic Police
show a reduction of fatalities in the Eastern
Province by more than five percent in the
last three years a hopeful sign that the
program is making a difference.
The Eastern Province has the second-highest

motor vehicle fatality rate in the Kingdom.
For Saudi Aramco employees, it is ironic that
men working offshore or high up on drilling
rigs or in processing facilities are more likely
to be injured going to or from work than at
work. For this reason, last year we appointed
a full-time team dedicated to spearhead the
effort to reduce motor vehicle fatalities
through Saudi Aramcos Traffic Safety Signature Program (TSSP).
TSSP continued to distribute the Traffic Safety

Manual to high schools and technical and
vocational colleges to educate young people on traffic safety. In 2011, 12,000 high
school students and 2,400 civil defense students received training with the Traffic Safety
Manual. Saudi Aramco has also collaborated
with Naif Arab University for Security Sciences
to train 45 officers to improve traffic and
highway security enforcement.
audi Aramco has a long-standing commitment to promoting
Assembly has proclaimed 2011

to 2020 as the first Decade of
Action for Road Safety.
As part of our approach to instill safety

principles in the minds of our youth, Saudi
Aramco coordinated a Comprehensive
Citizenship Outreach Safety Program for
40 schools in the Western Province. Another
Western Province program aimed to raise
health and safety awareness for children
with special needs.
| Aiming Higher |
Safety Awareness at Saudi Aramco
In promoting best practices, we believe in leading by example. As a safety-conscious corporate
citizen, we launched several initiatives that reinforced our culture of safety:

The Safety Ambassador Club was launched in 2011 at all employee training centers.
Since many of our employees workdays involve long hours on the road, we installed Driver
Monitoring Devices in 100 private cars driven by Saudi Aramco apprentices to monitor their driving
behavior. This initiative has already shown positive results.
Over the course of the next year, we will monitor the progress of our employees as they strive to
maintain the culture of safety at Saudi Aramco.
26
TSSP, along with Dammam University, conducted the first Traffic Forum in December
under the theme The Reality, Experience
and Hope. Thirty technical papers, four traffic safety workshops and eight successful
practices were introduced in the forum.
In the area of enforcement, the TSSP contributed funding and expertise to the third
phase of a government project to establish
command centers in Ras Tanura, Jubail, Nuairiyah, Khafji, Hafer Al Baten and Al Hasa.
With the completion of this phase, the seven
Traffic Police and Highway Security Forces
Fire safety and prevention is an issue that has become increasingly

prominent. In our communities and to the public, the Saudi Aramco
Fire Protection Department (FrPD) advocates fire prevention as the
best safety measure. Our annual Fire Prevention Week campaign,
which focused on preventing residential fires, was attended by
more than 12,500 visitors, including employees and their dependents, contractors, new hires, apprentices and domestic helpers.
We installed 1,000 fire extinguishers in our main communities in
2011 and trained residents on how to use them. As a result of
this prevention advocacy, we have seen a marked decrease in
the number of community fires in the last few years. In addition,
the FrPD participates in public fire safety awareness campaigns,
and conducts an outreach program in government schools to
teach children about fire prevention.
Community
Building a
Culture of Safety
Centers were integrated to manage their

fleets, improve response time to accidents
and improve accident data collection.
TSSP has also been working with the Ministry
of Transportation to improve traffic safety
throughout the Kingdom. By augmenting
the engineering capacity of the Ministry,
carrying out traffic studies, and making recommendations to the Ministry, TSSP continues to
support the implementation of the Ministrys
traffic safety strategies.
Since 2009, the Saudi Aramco Safety Simulator Trailer has helped promote awareness
of defensive driving among students and
young people. In 2011, the trailer reached
23,000 students at schools, universities and
institutes within the Central Province of Saudi
Arabia. In December 2011, the trailer was
visited by 9,329 people at various events in
the Eastern Province.
Saudi Aramco has participated in the Gulf
Cooperation Council (GCC) Traffic Week for
the last 27 years. The GCCs annual Traffic
Week campaign spreads awareness and
educates people on how to reduce the reckless driving behavior that leads to motor
vehicle accidents. Saudi Aramco organized
Traffic Week 2011 Coordination Committees
in all major company operating areas, with
activities to educate employees and the
public on how to prevent traffic incidents.
| Aiming Higher |
The TSSP focuses on the
four Es of Traffic Safety
Engineering: Raising the bar on better
and safer designs for roads and highways
Education: Educating youth and adults

on the dangers of reckless driving and
on developing safe driving habits
Enforcement: Cracking down on speeders

and reckless drivers
Emergency Care: Teaching first responders

across the Eastern Province the latest
techniques of accident triage and life
support for those critical minutes between
the crash scene and the hospital
27
In the coming years, we aim to increase the

percentage of donation funds directed toward targeted programs, and decrease the
percentage of funds distributed in response
to requests as financial gifts with minimal
programmatic engagement by Saudi Aramco.
Community
Targeting
Our Charitable
Giving
20,000
15,000
14,000
The School Kit

Campaign
on Downstream Petrochemical & Mineral

Industries Conference at Yanbu Industrial
City and the first Traffic Safety Forum.
Community
Looking Forward
In coordination with the Orphan Social Care

Center in Turaif, Saudi Aramco held an Orphan
Day where school kits and uniforms were
distributed among the children. The year
2011 marked the 10th year Saudi Aramco
has sponsored the School Kit Campaign.
By donating a portion of their salaries to the
purchase of school bags and study kits for
students in need, our employees have shown
a commitment to community well-being.
Looking Forward
09 10 11
Targeting
Our Charitable
Giving
audi Aramco has supported charitable causes through
donations and sponsorships since the establishment of our donation

fund in 1940. Our giving supports local charities, research and development, and access to health care for our communities. In 2011, Saudi Aramco
began implementing our In-Kingdom Donation Strategy, which aims to
support charitable causes that are in-line with Saudi Aramcos four pillars of
citizenship. The strategy also aims to ensure systematic and effective utilization of the donation funds, address pressing community needs, and build
the capacity of local charities. In 2011, one-third of the donation funds was
directed toward the following five programs:

Expanding edutainment halls for people with special needs
Renovating houses of needy families
Providing life skills courses for orphans with special conditions
Educating the community about diabetes, obesity and other common health problems
through the Early Detection Mobile Clinic
In addition to these new targeted charitable

programs, Saudi Aramco granted 65 requests
for sponsorship. Among the events we
sponsored were the Annual Charity Run, the
Summer Festival of the Eastern Province,
the Third Volunteering Day Festival and the
Volunteering Fair of King Fahd University of
Petroleum and Minerals, the first Saudi Forum
Our commitments for 2012

and beyond include:
Helping
to reduce traffic fatalities

and serious injuries in the Eastern
Province by 30 percent within the
next 10 years through our Traffic Safety
Signature Program
Installing
8,000 fire extinguishers in

Aramco communities in 2012
Designing
and implementing a volunteer

management system to enable more
accurate tracking of volunteer hours
and activities
Transitioning
all SAMSO facilities

across Saudi Arabia to smoke-free
environments during 2012
Offering rehabilitation and vocational training for juvenile delinquents
To help us select which charities to support,

Saudi Aramco commissioned a survey of
400 philanthropic leaders to assess unmet
needs in the Kingdom and potential areas
for contribution. Saudi Aramco then chose
five programs (listed above) based on the
survey results and our VISA selection criteria
(Visible, Impactful, Sustainable and Aligned).
28
Number of
school kits
For those five charities, Saudi Aramco is proactively involved in the design, management
and monitoring of the program activities. In
addition, payments are phased to reflect
progress on targets, and Saudi Aramco staff
members conduct field visits to ensure
proper implementation. These five programs
are also selected for their sustainability and
their Kingdom-wide impact.
29
175
1,390
teachers trained at the launch of the

Saudi Aramco Mathletics Initiative
338
1,600
participants in the College

Preparatory Program
Knowledge
Overview
participants in the College Degree

Program and Associate Degree
Program for Non-employees
students participated in iSpark,

a series of content-rich programs
providing creative opportunities to
learn through active engagement
Knowledge
Overview
audi Aramco firmly believes that there is nothing more
pressing in the Kingdom than preparing our young men and women
for the future. With the accelerating pace of change brought on by
technology and global competitiveness, transforming Saudi Arabia into a
knowledge-based society will be key to the Kingdoms future prosperity.
Knowledge will drive all industry sectors and must be spread throughout
the Kingdom. It is through knowledge education, skills, and building on
past experience that the Kingdom will thrive in the global economy. As
we aim higher and reach across borders with future partners towards new
markets and horizons, it is important both to invest in the leaders of tomorrow and to honor the valuable heritage of our Kingdom. Our most ambitious
initiative in promoting cultural awareness is the King Abdulaziz Center for
World Culture, now on its way to becoming a state-of-the-art institution
that will inspire a passion for learning, creativity, volunteerism and crosscultural engagement among its visitors.
Maintaining the position of the worlds preeminent energy producer is not

enough to guarantee future success. The Kingdom must strive to create a
knowledge-based economy.
Ali I. Al-Naimi, Minister of Petroleum and Mineral Resources and Chairman of Saudi Aramcos
Board of Directors, at the inauguration of the King Abdullah Petroleum Studies and Research Center
30
31
train-the-trainer workshops for volunteers

who in turn hold sessions for school teachers. In 2011, 350 teachers were trained
and the curriculum has already been implemented in schools.
Knowledge
Saudi Aramco also lent its support to a student-targeted program called Try Engineering, which is a web-based portal about engineering topics and engineering careers.
The portal was developed to help young
people understand what engineering means
and its many applications. Saudi Aramco
supported the design, translation and hosting
of TryEngineering.org content in Arabic. By
the end of 2011, 95 percent of the website
material had been translated into Arabic.
Investing in
Education
Investing in
Education
nowledge is imparted through education. Saudi Aramco
remains committed to supporting education programs that focus on

math, science and engineering education three critical areas for
the company and the Kingdoms future.
In 2011, we launched the Saudi Aramco
Mathletics Initiative for the Ministry of Education. Mathletics is an online educational
tool that helps teachers and parents raise the
math abilities of students from kindergarten
through 12th grade. Designed to improve
standards and engagement in math, this
four-year initiative will bring Mathletics to
more than 350,000 students in schools across
the Kingdom.
To facilitate accessibility and stimulate interest in alternative learning methods as part
of the Mathletics Initiative, Saudi Aramco
established a Math E-Portal website with
an Arabic interface, based on Saudi Arabian
math curricula. Launched in September, the
program trained 175 teachers in Jiddah,
Dammam, Riyadh and Al Hasa and 185,000
accounts were reserved for students use.
Saudi Aramco has created a pilot program to

foster 30 Math and Science Clubs in 15
schools in the Eastern Province. In 2011, we
finalized the curriculum and materials and
established four clubs in two intermediate
schools in Dammam and al-Khobar. We
32
expect the remaining 26 clubs to be active

by February 2012.
In 2010, Saudi Aramco committed to a collaboration program with Sultan bin Abdulaziz
Science and Technology Center (SciTech) and
the Massachusetts Institute of Technology
(MIT). The project, called BLOSSOMS, which
stands for Blended Learning Open Source
Science or Math Studies, creates videos that
engage students while teaching math and
science and sharpening their critical-thinking skills. A video library containing over 50
math and science lessons is freely available
to teachers as streaming video, Internet
downloads, DVDs and videotapes through
MITs website. In 2011, 200 teachers participated in BLOSSOMS one-week course on
how to use the videos in their classrooms.
Saudi Aramco has collaborated with the
Institute of Electric and Electronics Engineers
(IEEE) to promote engineering education
through workshops and hands-on engineering
lessons in Arabic, in classrooms and online.
The Teacher In-Service Program (TISP) aims
to spread engineering education through
Saudi Aramco completed the second year of

its three-year renovation project to provide
a major uplift to all 139 Saudi AramcoBuilt Government Schools and two Dhahran Ahliyyah Schools. Thirty-five schools
were renovated in 2010, and another 35
were renovated in 2011.
Our long-standing College Degree Program
for Non-employees gives Saudi students
the opportunity to receive a college education in areas of study required by Saudi
Aramco, with the intent of offering them
employment upon graduation. We currently
sponsor 1,342 students who are majoring in
engineering and business at King Fahd
University of Petroleum and Minerals and
at a number of competitive out-of-Kingdom
universities. Some of these students are
graduates of our College Preparatory Program
(CPP) and College Continuation Program (CCP).
In 2011, a total of 1,728 students participated
in the CPP, College Degree Program for Nonemployees, and Associate Degree Program
for Non-employees.
versity, King Abdulaziz and His Companions

Foundation for the Gifted (Mawhiba), Center
of Excellence in Education (CEE), and the U.S.
Research Science Institute (RSI). Through a
three-year sponsorship agreement, Saudi
Aramco will support talented Saudi students
as they prepare for careers of excellence and
leadership in one of the four chosen fields.
Knowledge
Investing in
Education
Since supporting education in petroleum

studies has a clear link to our business, we
are providing start-up assistance to the
King Abdullah Petroleum Studies and
Research Center (KAPSARC). This new international research and policy center will
focus on energy, environmental research
and policy studies. It will also house a large
solar power farm and water recycling facilities. Research on all facets of the petroleum
industry will be conducted at the center.
When fully operational, KAPSARC will employ approximately 320 researchers and
support staff.
Saudi Aramco sponsors 13 chairs in various
universities in the Kingdom to promote
collaboration with institutions of higher
learning, as well as to encourage academic
and research excellence in areas of high priority for Saudi Aramco and the Kingdom.
Investing in world-class researchers is crucial
to creating a knowledge-based economy in
the Kingdom.
The inaugural class of the Saudi Research

Science Institute (SRSI) at King Abdullah
University of Science & Technology enrolled
25 Saudi high school students, 13 of whom
were female. The program provides a mentorship model that combines theory courses
and research in the subjects of science,
technology, engineering, and math. SRSI is
based on a four-part partnership initiated by
Saudi Aramco in coordination with the uni-
33
Knowledge
Knowledge
Inspiring
Saudi Arabias
Young People
Inspiring
Saudi Arabias
Young People
Inspiring
Saudi Arabias
Young People
hroughout its history, Saudi Aramco has emphasized
inspiring and developing our countrys youth. In 2011, Saudi Aramco

approved the Youth Master Plan, which outlines our strategy for
enriching the lives of two million young people in the Kingdom by 2020.
We have begun developing and piloting programs and scaling up outreach
efforts to youth throughout the Kingdom.
The Saudi Aramco Exhibit is a high-tech science museum that brings to life petroleums
journey from its origins in underground
rock formations and drilling operations, to
refineries and eventually to marine shipping terminals. In 2011, the Exhibit hosted
approximately 45,000 students as part of
the School Visitation Program. The Exhibit is
now closed for renovation.
To encourage a culture of reading, for many

years Saudi Aramco has released a series of
childrens publications. The Amazing Journey:
Exploring Saudi Arabia and Saudi Aramco
brings Saudi Aramcos message to young
readers aged 6 to 12. In 2011, we also
released Energize!: How Saudi Aramco
Powers the Planet, targeted for ages 1318.
It gives teenagers basic information about
the petroleum industry, Saudi Aramcos role
in it and the many possible careers the
company offers.
34
We also have a long history of sponsoring

Mobile Libraries. In 2011, the Mobile
Libraries visited 196 schools, mainly in remote areas of the Kingdom. Nearly 23,000
students benefitted from the Mobile Libraries
in the Eastern Province alone. In addition to
providing access to books, our program includes lessons on proper library etiquette,
how to borrow books, and how to find books
using the library classification systems. In the
Western Province, the Mobile Library also participated in a Reading Festival and a Reading
Skills Day to encourage students to read.
35
It is clear to all of us that we have the most exciting job in the world. We feel
that there is something uniquely magical and stimulating about establishing an
intellectual monument that shall be seen by millions.
Knowledge
Khalid S. Al-Yahya, Director of the Knowledge and Research Division at the Center
Spreading Cultural
Awareness
Spreading
Cultural
Awareness
key element of knowledge is an understanding of the
cultural context of our world. The King Abdulaziz Center for World
Culture (the Center) embodies Saudi Aramcos commitment to
cultural awareness and understanding. Since its groundbreaking in 2010,
the complex has begun to take shape. Once completed, the Center will be
a fully integrated institution for lifelong learning, creative inspiration and
cross-cultural connections. It will include a modern multi-level public library,
a four-gallery museum, an historical archive, the Kingdoms first childrens
center, a lifelong learning knowledge center, cafes, and shops.
While the buildings of the Center are still

under construction, programming is already
under way, particularly youth programs.
One of the years highlights was the launch
of iSpark, a series of content-rich programs
providing creative opportunities for young
people to learn through active engagement.
The iSpark program had many associations,
including the California Science Center, iD
Tech Camps and the School of Cinematic
Arts at the University of Southern California.
It comprised 100 certificate-based workshops throughout the summer months with
three areas of focus:

Science: human identity, robots,
physics and rockets
36
Technology: computer game
be interested in returning, iSpark will be

expanded in 2012 to reach 10,000 students.
Another one of the Centers pilot programs
is the Keystone Program, which is a youth
innovation center that encourages interdisciplinary investigation, experimentation
and actionable innovation in the areas of
art, science, and social development. Here
ideas are brought to life through an idea
translation process that results in potentially patentable, commercial products with
vibrant exhibits.
design and web design

Multimedia: photography,
animation, sand animation,

video production, video editing
and documentary filmmaking
Participants spent an average of 20 hours
over five days working with their group
on interesting and challenging projects
designed to inspire and expose them to a
variety of disciplines. More than 10,000
applications were received for the 1,600
student spots available in 2011. Fifty
teachers participated. Given the high initial
demand and the fact that survey results
indicated 98 percent of participants would
The Keystone Program was piloted in 2011

with the theme of The Future of Water.
Through the program, seven competitively
selected young Saudi professionals learned
how to conceptualize, create, market, and
sell their innovative products. These young
participants now have two commercial patents pending. The Center plans to have 50
such talented individuals pass through the
Keystone Program each year.
Saudi Aramco worked with the Prince Sultan

Cultural Center to support the Tabuk Awareness Campaign. We participated with booths
that described our business and presented
the Saudi Aramco Traveling Experience
Exhibit, which teaches visitors about the
history of the Kingdoms petroleum industry
and our role in it. Saudi Aramco also collaborated with the Prince Sultan Cultural
Center at a three-day event called Together toward a Better Life in an effort to raise
awareness of our company through educational presentations and brochures.
Knowledge
Spreading Cultural
Awareness
There are other good libraries

here and there in the Arab
world, but you dont have this
consolidation of a library,
archives and museums. Its a
whole vision, one package for
developing the society toward
a knowledge society. I believe
personally its a great vision
and it will have an impact not
only in Saudi Arabia, and the
region, but also worldwide.
Ahmed Abu Zayed,
Chief Archivist, Knowledge and Research
Division at the Center
Another aspect of the Keystone Program is

the Keystone Think Tank, which is a program of events that will nurture creativity
and help program participants to become
social innovators and cultural entrepreneurs.
37
| Aiming Higher |
King Abdulaziz Center for World Culture
Last year, we began laying the foundation for what is to become a beacon of
knowledge, creativity and cross-cultural engagement in the Kingdom. This foundation comprises the people, building, and programs that will bring this vision to life.
In 2011, we achieved significant growth in these three areas.
Knowledge
Spreading Cultural
Awareness
Knowledge
Looking Forward
People
I think the Center will be a very important place. It will reflect society in the Kingdom,
but it will also introduce people to new experiences in a safe and creative environment. It will engage people young and old, and I think it will be a place that people
feel that they want to come to again and again.
Lorraine Cornish, Museum Collections Specialist, Culture and Creativity Division at the Center
The Centers staff grew significantly in 2011. In 2008, the staff numbered fewer
than 10. By the end of 2011, there were 85 team members, and we have plans for
hiring more. The new hires came with a strong technical IT expertise, as well as
specialties in different levels of education, from early childhood to e-learning. Others
brought expertise in designing community programs, digital archival collections,
and interior architectural design.
Every opportunity for knowledge transfer from Center subject matter experts to
local Saudi professionals is being taken in order to advance the development of the
Kingdoms creative industry sector.
Building
Construction of the Center is well under way, and the various building foundations
are being placed for the multilevel concrete structures, which extend four levels
below ground. Ten of the Centers 18 levels are already visible amid a forest of
steel reinforcing bars, walls and towers of concrete.
Designers, architects, engineers and construction workers were hard at work in 2011
to construct the gleaming, iconic, 300-foot tall structure. Almost 1.1 million cubic feet
of structural concrete have been poured, and 1,300 construction workers are on
site. The faade, one of the Centers most striking and original features, is currently
being fabricated by a leading German manufacturer in six different countries.
Programs
Hundreds of programs and workshops are under development, and the Center is
taking special care to design an interactive visitor experience of its art, culture, and
learning offerings by using the latest technological innovations. In 2011, the Center
successfully launched six major pilot programs; registered 400 volunteers; developed 300 student projects; held more than 100 workshops; trained and certified
more than 50 Saudi teachers; mentored 50 youth leaders; and delivered 50 hours
of performing arts.
Looking Forward

and beyond include:
Expand
iSpark in 2012 to reach

10,000 youth
Develop
key performance indicators

to capture the impact of the King
Abdulaziz Center for World Culture
Launch
the iRead program in 2012

to encourage approximately 15,000
students to read
Continue
implementation of the
online Arabic Math E-Portal
Launch
26 Math and Science Clubs

in the Eastern Province in 2012
Train
an additional 200 teachers

as part of the project Blended Learning
Open Source Science or Math Studies
(BLOSSOMS)
Renovate
35 Saudi Aramco-built
Government Schools
38
39
The world has changed, and Saudi Aramco is leading the way
in making environmental stewardship central to our practices.
10.08
1.1
50,000
st
1
AbdulHameed Al-Rushaid, General Manager of Drilling,

at an environmental awareness campaign and exhibition
thousand barrels of oil equivalent per

day in annual fuel savings, representing
3.44% of total energy consumption
Environment
Overview
million tons of carbon dioxide

emissions avoided through the
implementation of operational and
retrofit energy conservation initiatives
mangrove trees planted along
the Arabian Gulf coast
Mobile Carbon Capture vehicle in
the world built by Saudi Aramco
Environment
Overview
or a global oil company with a major influence in Saudi
Arabia, simple environmental compliance is no longer adequate to

protect our natural resources. Today, were setting the bar much higher
as we aim to go beyond compliance and achieve best-in-class performance.
Saudi Aramcos Environmental Protection

Department (EPD) currently measures the
environmental performance of more than
40 different facilities, tracking compliance,
awareness and training, and initiatives,
against 21 specific environmental indicators.
We remain committed to the multi-billion dollar Environment Master Plan we launched in

2001. Capital projects included in the plan are
expected to reduce volatile organic compound
emissions from loading operations in terminals and bulk plants by more than 80 percent.
Saudi Aramco was a leader when in 1963 we adopted our first

explicit environmental protection policy. We did that before it
was fashionable to talk about the environment. No more are
we just looking at the economics. We are willing to assign a
value for environmental protection.
Khalid A. Al-Falih,
President and CEO at the Presidents Environmental Stewardship Awards
40
41
Environment
Environment
Enhancing
Energy Efficiency
Enhancing
Energy Efficiency
Our recently completed Al-Midra Complex in Dhahran, designed to be environmentally aware, uses solar panels that double as sunshades over its 4,500
parking spaces. Covering an area of 198,350 square meters and using over
126,000 solar panels, it stands as the worlds biggest car-park shade and generates 10 megawatts of energy for the Al-Midra Complex. This effort complements other green design elements of the complex as part of our initiative to
receive LEED (Leadership in Energy and Environmental Design) certification.
mproving our energy efficiency is one way we are working
to reduce our environmental impact. Our Energy Management Program

(EMP) has directed our energy efficiency efforts since 2000, following the
creation of a company-wide policy committing us to the efficient production
and use of energy and to reducing overall energy costs and conserving
resources used in producing energy. The EMPs overall strategy consists of
four principal elements:
1. Reduce the energy consumption of existing facilities by
two percent annually.
2. Design new Saudi Aramco facilities to be energy efficient.
avoidance of CO2 emissions to 14.1 million

tons since 2000.
Because Saudi Arabia has one of the worlds
highest energy intensity ratings (amount of
energy required to produce one unit of
gross domestic product), efforts to conserve
energy are important for the Kingdoms economic future. Saudi Aramco is supporting
the National Energy Strategy (NES) team
to develop strategies to address the energy
efficiency challenges at the national level.
The NES team studies hydrocarbons supply,
power supply, energy efficiency, and demand forecasting and management.
3. Influence and promote energy efficiency at the national level.

4. Reduce overall energy costs and conserve resources used
in producing energy.
In 2011, we implemented 59 energy saving
initiatives and achieved energy savings of
10.08 thousand barrels of oil equivalent per
day (MBDoe), which represents 3.44 percent of our total energy consumption for the
year. Increased petroleum production meant
that our 2011 consumption total of 293 MBDoe was slightly higher than our 2010 total
of 285 MBDoe. Without our energy saving
42
initiatives, however, we would have consumed

303 MBDoe. Our cumulative reduction in energy consumption since the inception of the
EMP in 2000 has now reached 122 MBDoe.
In 2011, we also avoided 1.1 million tons of
CO2 emissions through implementation of
both operational and retrofit energy conservation initiatives, bringing the cumulative
Saudi Aramcos Gas Operations organization

has introduced a unique energy efficiency
program to reduce facility energy use by 26
percent by 2015. We aim to achieve a 10
percent reduction through plant optimizations and process improvements within the
operating facilities. The remaining 16 percent reduction in energy intensity will be
achieved through capital projects in new or
expanded facilities. In 2011, energy intensity was significantly reduced by more than
five percent surpassing our two percent
target through effective implementation
Enhancing
Energy Efficiency
of the efficiency program elements. This included a part-time energy team, a full-time
energy engineer, installation of monitoring
tools, and energy assessment studies.
Saudi Aramco established new energy conservation guidelines for industrial facilities
and non-industrial buildings within the Kingdom. The new energy efficiency guidelines
are being applied by the Kingdoms fuel allocation committee to industries including
cement, steel and petrochemicals. The
guidelines establish minimum requirements
for various aspects of all buildings, including heating, ventilation, air conditioning
and lighting equipment. Full implementation of the non-industrial building guidelines
is forecast to improve the energy efficiency
of a typical building by 60 to 80 percent.
To encourage innovation around energy
conservation, Saudi Aramco organized the
Energy Conservation Innovation Tournament
for employees. The tournament has generated more than 1,800 energy efficiency
ideas, 80 of which have the potential to be
patented and 180 ideas that may be implemented. We estimate that up to 20 MBDoe
will be saved by implementing these ideas.
43
Mangroves are only one part of the overall marine environment, but they are an important
part. Mangroves provide habitats where fish and shrimp spawn. They also help control
coastal erosion and provide sanctuary for migratory and other birds. We want to help
people understand the value of mangroves not only to our environment but to our
economy and communities.
Environment
Protecting
the Natural
Environment
nder the leadership of our Environmental Protection
Department (EPD), Saudi Aramco remains committed to the Environmental Protection Policy established in 1963.
In 2011, EPD introduced the Saudi Aramco

Environmental Management System (EMS)
for implementation by our operating facilities. The EMS is based on ISO 14001:2004
specifications, an internationally regarded
standard designed to facilitate development
of internal processes for identifying and
mitigating environmental impacts. EPD customized the EMS for Saudi Aramco operating
facilities to monitor, measure and improve
our environmental performance to reduce our
environmental footprint.
Saudi Aramcos environmental stewardship
efforts expanded with the launch of our Corporate Biodiversity Initiative. Key projects
of the initiative include:
Establishment of a wildlife
sanctuary in Shaybah
Creation of artificial reefs

in the Arabian Gulf
Construction of hatcheries
to restock fisheries
Implementation of stewardship
measures for ecologically sensitive
habitats within the companys
areas of operation
44
Environment
Ali Qasem, Environmental Specialist, Environmental Protection Department
Protecting
the Natural
Environment
Studies to develop a National

Framework for Fisheries Management
Development of a Mangrove
Eco-Park in Tarut Bay
During 2011, 50,000 mangrove trees were

planted along the Arabian Gulf coast, which
represents the first phase of our plan to
plant one million mangrove trees over the
next five years in various coastal areas. This
commitment builds on a company mangrove transplantation program that dates back
nearly 20 years. Mangroves are essential
not only because they protect the shoreline
against the constant onslaught of wind and
waves; they also are an essential part of the
marine food chain. This will hopefully revive
this vital natural habitat that has declined
over the past few decades.
As we expand our operations, we work to
minimize our impact on the natural environment. For example, during the development
of the Manifa Field, located offshore in the
Arabian Gulf, extensive engineering and ecological studies were completed to ensure that
the marine ecosystem will not be compromised. As a result, bridges were constructed
to span the migration pathways of various
marine species.
Protecting
the Natural
Environment
Saudi Aramcos Flare Minimization Program

is a structured program to reduce flaring by
deploying Flare Monitoring Systems for the
measurement, recording and reporting of
flare losses. Site-specific Flare Monitoring
Systems were completed for all refineries,
natural gas liquids (NGL) facilities and gas
plants in 2011, enabling facilities to record
and classify real-time flare losses. This program contributed to total reductions in the
flaring level of 58 percent at the NGL facilities and 30 percent at gas plants since 2010.
As part of our Waste Management Program,
our Jiddah Refinery launched an initiative
that resulted in 10,000 cubic meters of accumulated sludge deposits being cleared
from the marine area. We also took the lead
in developing advanced treatment technology for oily wastewater. This technology was
piloted in our Ras Tanura Refinery where it
proved to be a cost-effective way to treat
oily wastewater effluents. We licensed the
membrane bioreactor technology to
Siemens to be commercialized under the
trademark name Eco-Right.
Saudi Aramco has employed a zero discharge
technology, utilizing chemical neutralization followed by multiphase separation
processes, to recover hydrocarbons from
well-testing operations. We have implemented this technology at several onshore
oil and gas wells in 2011 to eliminate gas
flaring and open discharge of liquid hydro-
carbons. This resulted in conservation of

valuable hydrocarbon resources, reduction of
in-rig time, enhanced process safety and a
significant reduction of environmental impact.
The zero discharge technology is now the
default practice for onshore wells and was
also successfully piloted in three offshore
wells in Safaniya oil field in the Arabian Gulf.
We have sponsored a recycling program
in the Eastern Province for many years. In
2011, we extended the program to communities in the Central and Western Regions.
In 2011, we collected 1,346 tons of paper,
cartons, plastic, glass and aluminum materials and 11,500 toner cartridges for recycling.
Our recently launched Office Expansion
Program will conduct workshops for custodial
staff on collection procedures for recyclables to ensure participation of all company
office facilities.
is to reduce fresh water consumption by 70

percent over the coming 10 years through
leveraging technologies and best industry
practices.
Additional efforts related to water preservation included our sponsorship of the Water
Arabia 2011 Conference in Bahrain. The
conference, Water and Wastewater Technologies for a Sustainable Environment,
was attended by more than 850 water and
wastewater specialists from 10 countries.
To increase the practice of recycling in the

wider community, Saudi Aramco holds recycling awareness sessions in the Eastern
Province targeting employees, their families,
local schools, communities and government
facilities. In 2011, more than 14,000 people
attended our recycling campaigns.
Saudi Aramco established a water conservation policy, and formulated a comprehensive
strategy with a goal of promoting water conservation company-wide to conserve the
Kingdoms groundwater resources. Our goal
45
Environment
Environment
Raising Awareness
for Environmental
Protection
Developing
Cleaner Energy
Technologies
Looking Forward
| Aiming Higher |
Saudi Aramco sponsors Desert Seas with National Geographic and
Seas of Change
Saudi Aramco teamed up with award-winning
filmmakers to bring the underwater world of the
Red Sea and the Arabian Gulf into the homes of
people around the world. The one-hour production of Desert Seas premiered in North America
in April 2011 and is currently aired on the worldrenowned National Geographic WILD Channel.
The second, shorter production, Seas of Change,
which documents Saudi Aramcos environmental
stewardship, is viewable on the company website

and is shown at various exhibits and trade shows
around the world.
Saudi Aramcos marine scientists imparted their
extensive knowledge of the local marine and
coastal environment to the filmmakers, and our
helicopter fleet was deployed to capture aerial
shots for the film. Filming for the two productions lasted for 133 days.
| Aiming Higher |
Saudi Aramco builds the worlds first Mobile Carbon Capture vehicle
In just over 17 months, Saudi Aramcos Research
and Development Center developed a prototype
vehicle to demonstrate the viability of capturing
and temporarily storing carbon dioxide onboard
a passenger vehicle. To reduce emissions, this
technology separates carbon dioxide from the
exhaust stream by utilizing the waste heat produced by the combustion engine. We anticipate
that the technology could be adapted to other
mobile sources such as ships and trains. In the

first prototype, we achieved a 10 percent reduction in carbon dioxide emissions. As we continue
to develop this technology, we hope to achieve a
60 percent reduction in emissions. This groundbreaking technology has the potential to reduce
the environmental impact of the worlds transportation system.
Looking Forward
and beyond include:
Reducing total energy consumption

of our existing facilities by 2 percent
annually for the coming three years
Conducting
energy conservation studies

of three facilities in 2012
Raising
Awareness for
Environmental
Protection
n addition to working to improve our environmental perfor-
mance, we also worked to raise awareness for environmental protection.

We held a Mangrove Transplantation Campaign at Tarut Bay near our Ras
Tanura Refinery to educate the public on the importance of mangroves to the
marine environment and to inspire them to get involved in the conservation
and rehabilitation of mangrove habitats.
In another effort to increase awareness
about the value of our natural environment,
we published the Marine Atlas of the Western Arabian Gulf. The atlas was produced in
partnership with the Center for Environment
and Water at the Research Institute of King
Fahd University for Petroleum and Minerals.
It documents the diverse marine and coastal
environments of the Arabian Gulf. Its 383
pages include images and detailed information that showcase one of the regions most
diverse ecosystems.
46
Saudi Aramcos Environmental Education

Initiative works to enhance environmental
knowledge, awareness and appreciation
among young people and school children.
This is achieved through a series of workshops for school teachers, who are charged
with forming Friends of the Environment
groups to promote environmentally friendly
attitudes among students, families and the
community at large. This initiative is being
undertaken in partnership with the Ministry
of Education and has been introduced to
more than 500 schools and more than 400
Friends of the Environment groups have
been established.
Reducing fresh water consumption

by 70 percent over the next decade
through leveraging technologies and
best industry practices
Implementing the Flare Minimization

Program for all remaining plants,
including oil producing facilities
Developing Cleaner Energy Technologies

Saudi Aramco is piloting a number of exciting
solar power projects. In collaboration with
the Saudi Electricity Company and Solar
Frontier, our equity partner with Showa Shell
of Japan, we installed a 500-kilowatt solar
farm on Farasan Island in the Red Sea. This is
part of our efforts to meet the Kingdoms
ever-increasing demand for electricity
through clean energy solutions.
In addition, Saudi Aramcos construction of
the King Abdullah Petroleum Studies and
Research Center will include solar panels
that will generate 3.5 megawatts of energy.
A new Saudi Aramco-built solar facility at
the King Abdullah University of Science &
Technology will generate two megawatts
of energy.
In order to stay at the forefront of solar energy developments, we have set up a solar
technology park in Dhahran which hosts
more than 30 different technology vendors. The objective of this solar park is to
monitor and assess the development of
emerging technologies and their application in the Kingdom.
A new technology we are exploring is carbon
dioxide capture and injection to reduce
emissions while also enhancing oil recovery.
We started a project in 2011 to compress and
dry carbon dioxide from the Hawiyah NGL
recovery plant, and transport and inject the gas
in Ghawar Field. When completed in 2013, the
project will demonstrate the viability of this
technology for enhanced oil recovery.
Creating
our first annual reports on

site-specific Flare Minimization Plans,
which will identify flaring sources in each
facility, and provide classification, analysis
and short- and long-term mitigation
measures to minimize flaring in refineries,
natural gas liquids facilities and gas plants
Engaging
85 percent of the Dhahranbased workforce and 55 percent of other

operations in the recycling program
Meeting
46 percent of landscape
irrigation water needs through sanitary
tertiary wastewater
Planting 200,000 mangrove trees each

year as part of our plan to plant 1 million
mangrove trees over the next five years
47
Our
Outlook
Our Outlook
ust as we are undergoing a transformation in our core
business Aiming Higher to unlock the full potential of our operational

infrastructure and talented people we are constantly seeking to
enhance our positive impacts on people and the natural environment. Looking forward to 2012, we anticipate progress in a variety of key strategic areas.
Creating Platforms for

Collaboration and Dialogue
Key to the development of our citizenship
strategy in 2012 will be fostering collaboration in corporate social responsibility among
a variety of organizations in the Kingdom,
including private companies, nonprofit organizations and government ministries. This
builds on the companys strengths as a convener and as a partner, which we exercise in
all aspects of our business. We feel the time is
right in the Kingdom for enhanced exchange
of ideas and higher levels of collaboration
and partnership, and look forward to lending
our energy to this cause.
Measuring and
Reporting Our Impacts
As mentioned for the first time in our 2010
Corporate Citizenship Report, a key area of
development in our citizenship strategy and
reporting process will be a shift toward
establishing key performance indicators to
48
track our progress and performance toward

delivering sustained impact. This requires us
to ensure that we are measuring the right
things and building the processes, protocols
and controls necessary to collect, verify and
report on this data. This is an ongoing process,
and our progress in this area will become
apparent through increased detail and transparency in our citizenship reporting.
Enhancing our Organizational

Structure for Citizenship
The establishment of the Corporate Social
Responsibility Division in 2009 was the first
step in a process to create an organization
within an organization to support the
effective design, implementation, measurement and reporting of citizenship activities.
Moving forward, this process will continue
through continual assessment of staffing
and budget allocation, and the implementation of a governance framework to preside
over key decision making related to citizenship programs.

Aramco PDF

Enviado por

Dados do documento

Descrição original:

Título original

Direitos autorais

Formatos disponíveis

Compartilhar este documento

Compartilhar ou incorporar documento

Opções de compartilhamento

Você considera este documento útil?

Este conteúdo é inapropriado?

Direitos autorais:

Formatos disponíveis

Aramco PDF

Enviado por

Direitos autorais:

Formatos disponíveis

Table of Contents

About Saudi Aramco

Citizenship Around the World

Chairmans Message and Presidents Foreword

Citizenship at Saudi Aramco

| Aiming Higher | About this Report

The Custodian of the Two Holy Mosques,

Saudi Aramco 2011 Corporate Citizenship Report

His Royal Highness Naif ibn Abd Al-Aziz Al Saud

We support the Kingdoms growth and

We support our local communities

We foster knowledge in the Kingdom

We encourage stewardship and innovation

90% of material procurement

21 workshops conducted by the Nursing

200 teachers attended a course on how to

75% of service procurement spending

1,200 suppliers at the launch of the

274 trainees participated in Waed, our

1.5 million visitors to the summer

17% decrease in the on-the-job motor

entrepreneur development initiative

12,000 high school students and 2,400

5,907 employees participated in the

civil defense students trained with the Traffic

4,074 Saudi high school graduates and

32,300 students educated in traffic safety

350 teachers trained in the Teacher In-Service

by employees and submitted to the Energy

Program to promote engineering education

Gas Operations reduced facility energy

35 Saudi Aramco-built government

50,000 mangrove trees planted along the

Arabian Gulf coast

25 high school students, including

40% reduction in overall flaring level at NGL

the Saudi Research Science Institute (SRSI)

by the Saudi Aramco Safety Simulator Trailer

45,000 students hosted as part of the

20,000 school kits provided by the School

School Visitation Program to the Saudi

>1,800 energy efficiency ideas generated

196 schools visited by the Mobile Library

10,000 cubic meters of accumulated

Saudi Aramco 2011 Corporate Citizenship Report

Back to Table of Contents

Worlds largest proven conventional

3.3 billion barrels of crude oil

he Saudi Arabian Oil Company

Saudi Aramco 2011 Corporate Citizenship Report

Back to Table of Contents

Citizenship Around the World

Road to Success Our Road to Success

Back to Table of Contents

Museon Museum Aramco Overseas Co.

Womens Leadership We have sponsored

Oxford Energy Seminar Aramco Overseas Co.

Museum of Fine Arts Aramco Services Co.

Houston Half Marathon For the seventh

Saudi Aramco 2011 Corporate Citizenship Report

The Future is Green Aramco Overseas Co.

Innovation Symposium Aramco Overseas Co.

Innovation Symposium Aramco Overseas Co.

Funding 20 entrepreneurial ventures

Fully launching Saudi Aramco Energy

Striving for a Saudization rate in our