with

Disclaimer
The information contained herein is made available to the public by Saudi Aramco, and is provided as is. Saudi Aramco makes no representations or warranties, express or implied, as to the correctness, completeness, or use of this document or the information therein by any party for any purpose whatsoever. Neither Saudi Aramco nor any of its afliates shall be liable for any direct, indirect, incidental, consequential, or punitive damages arising out of or in any way connected with the information herein. Use of, or reliance on, the information contained in this document does not create any binding legal or other obligations on Saudi Aramco towards any other party. Reference herein to any specic organization or company does not constitute or imply Saudi Aramco s endorsement or recommendation of, or preference toward, such entity.

TABLE OF CONTENT
OVERVIEW CORPORATE VALUES SUPPLIER CODE OF CONDUCT SAUDI ARAMCOS SAFETY CULTURE WHY SAUDI ARABIA? (BUSINESS ENABLERS) DEVELOPMENT OF LOCAL OIL AND GAS SUPPORT INDUSTRIES 1. INITIAL STAGE: ASSESSMENT 2. INTERMEDIATE STAGE: PROJECT EXECUTION PLAN 3. FINAL STAGE: EXECUTION TECHNICAL SUPPORT TO LOCAL MANUFACTURERS 1. TECHNICAL REQUIREMENTS INCENTIVES FOR LOCAL AND FOREIGN INVESTORS INVESTMENT ENABLERS AT A GLANCE GUIDELINES FOR LOCAL AND FOREIGN INVESTORS TO ESTABLISH MANUFACTURING OR SERVICES ENTERPRISE IN THE KINGDOM OF SAUDI ARABIA (KSA)
1. ESTABLISH CONTACT WITH SAUDI ARAMCO 2. CONTACT SAGIA TO UNDERSTAND KSAS ENABLERS AND INCENTIVES 3. PREPARE FEASIBILITY STUDIES 4. SELECT LOCAL PARTNER(S), IF NEEDED 5. APPLY FOR INVESTMENT LICENSE, REFERENCE NUMBER AND COMMERCIAL REGISTRATION 6. APPLY FOR INDUSTRIAL LAND, IF NEEDED 7. APPLY FOR GAS 8. APPLY FOR LOAN 9. VALIDATE REQUIREMENT AND FACILITY LAYOUT VIA NEW BUSINESS DEVELOPMENT 10. START CONSTRUCTION 11. APPLY FOR HUMAN RESOURCES DEVELOPMENT FUND 12. INITIATE PLANT APPROVAL AS A LOCAL MANUFACTURER

1 1 1 2 2 2 2 2 3 3 3 3 4 5 5 5 6 6 7 7 8 9

D. ELECTRONIC CONTRACTING NETWORK (ECN) E. SAUDI ARAMCO CONTRACT PROCUREMENT PROCESS F. BID SLATE DEVELOPMENT G. JOB EXPLANATION MEETING H. BID CLOSING DATE AND BID OPENING I. NEGOTIATION OF COMPETITIVE BIDS J. CONTRACT AWARD K. DEBRIEFING MEETING L. CONTRACT PERFORMANCE AND ADMINISTRATION M. CLAIMS N. APPLICABLE LAWS AND MANPOWER O. CONTRACTOR ASSISTANCE P. CONTRACTING SUMMARY

PURCHASING POLICIES AND REGISTRATION PROCEDURES

A. PURCHASING POLICIES B. LOCAL CONTENT FOCUS C. CAPITAL PROGRAM SOURCING D. KEY SUPPLY CHAIN STRATEGIES E. PURCHASING GUIDELINES F. SUPPLIERS CONTRIBUTION G. SUPPLIER RELATIONS H. LOCAL Industrial Development Unit I. REGISTRATION PROCESS J. REGISTRATION AS A LOCAL MANUFACTURER K. REGISTRATION AS A LOCAL VENDOR L. REGISTRATION AS AN INTERNATIONAL MANUFACTURER M. INTERNATIONAL VENDORS

A WORLD OF OPPORTUNITY: SAUDI ARAMCO CONTRACTING POLICIES AND REGISTRATION PROCEDURES

A. CONTRACTING POLICIES B. CONTRACTOR RELATIONS C. CONFIDENTIALITY

11 N. INTERNATIONAL SUPPLIER AGENCY ARRANGEMENTS 11 O. DISCLOSURE 11 P. AUTHENTICITY OF DOCUMENTATION 11 Q. SUPPLIER PERFORMANCE 12 R. SAUDI ARAMCO SUPPLIER PORTAL 12 CONCLUSION 12 CONTACT INFORMATION 12 IMPORTANT AND USEFUL LINKS 13

13 14 14 15 15 16 16 16 16 16 17 17 17 17 17 17 18 18 18 18 19 19 19 19 21 21 22 22 22 23 23 23 24 25 28

OVERVIEW
Saudi Aramcos operations encompass the entire energy industry and span the globe. The world leader in crude oil production, Saudi Aramco also owns and operates an extensive network of rening and distribution facilities, and is responsible for the gas processing and transportation installations that fuel Saudi Arabias industrial sector. An array of international subsidiaries and joint ventures, including one of the worlds largest and newest eet of supertankers, deliver crude oil and rened products to customers worldwide. Corporate policy tasks Materials Supply with responsibility for procurement in support of Saudi Aramco and we are currently supporting the largest capital program expansion and level of operations in company history. To enable Saudi Aramco to support the worlds energy needs, Materials Supply must manage a lean, efcient supply chain. This booklet provides an overview of doing business with Saudi Aramco. It is intended to be a resource to help build strong relationships between Saudi Aramco, vendors, manufacturers, and contractors and to encourage implementation of supply chain management (SCM) best practices. Also, the booklet provides an overview of Saudi Aramco efforts in supporting Saudi Arabias economy through local content initiatives, and new business development. Finally, the booklet guides potential vendors, manufacturers, and contractors on how to join the Saudi Aramco supply chain. The core strategies of Materials Supply are: 1. Maximize value added to stakeholders 2. Promote and expand value of local content 3. Continuously develop innovative supply chain methodologies 4. Develop and retain professional and effective workforce

CORPORATE VALUES
Saudi Aramco adheres to the following set of values that are incorporated in our daily procurement activities. Similar values are expected from suppliers and contractors supporting the Saudi Aramco supply chain. Excellence: We drive for best results, and are agile in addressing new challenges. Safety: We operate safely and committed to the well-being of our workforce. Accountabitiy: We take responsibility for our actions and for meeting corporate objectives. Integrity: We follow ethical standards in conducting our business. Citizenship: We are positive inuence in our communities.

SUPPLIER CODE OF CONDUCT

Saudi Aramco is committed to conducting its business in an ethical manner. Saudi Aramco requires its Suppliers and Contractors to share these commitments and, therefore, has established the Supplier Code of Conduct. All registered vendors, manufacturers, contractors, and sub/contractors with which Saudi Aramco conducts business are required to acknowledge, and agree to abide by, the policies and principles set forth in the Code of Conduct to continue doing business with Saudi Aramco. This is also applicable to all new potential vendors, manufacturers, contractors, and sub-contractors. We also expect our Suppliers and Contractors to provide this Supplier Code of Conduct

with all Employees within their organizations who are involved in conducting business with Saudi Aramco. Our business relationships are founded on trust and we understand that it is essential that all parties involved in supply chain procurement activities feel condent in the fairness and transparency of the related process.

Its the worlds fastest reforming business climate. Its the largest free market in the MENA. Represents 25% of total Arab GDP. The 13th out of 181 countries for the overall ease of doing business globally. The 7th in terms of ease of paying taxes. The 1st for ease of registering property and its the largest recipient of Foreign Direct Investment in the Arab world. In addition to the above, Saudi Arabia assist investors in setting up their business in the Kingdom at all aspects.

SAUDI ARAMCOS SAFETY CULTURE

Saudi Aramco has a long and proud heritage of promoting safety as a value and way of life. Materials Supply encourages our suppliers, contractors and manufacturers to join in embracing the conviction that All incidents are preventable.Materials Supply encourages all supplier and contractor employees to establish safety as a personal priority while in the workplace, on the highway or at home. We all must work together to create and maintain a safety-oriented culture with zero tolerance for unsafe actions or behavior.

DEVELOPMENT OF LOCAL OIL AND GAS SUPPORT INDUSTRIES

1. INITIAL STAGE: ASSESSMENT If requested by the investor, New Business Development will assess Saudi Aramcos consumption for a specic commodity/service. Assist the investor in developing a preliminary commercial assessment of his project opportunity related to the product or service. 2. INTERMEDIATE STAGE: PROJECT EXECUTION PLAN Following completion of the preliminary study, the investor will perform a detailed feasibility study focusing on the intended commodity/service range and associated nancial, operational and construction elements of the project. Based on the results of the detailed feasibility study, the investor creates a project execution/planning team to develop the new venture. The investor applies for an investment license at SAGIAs in-Kingdom (IK) ofces or submits an online application via SAGIAs website.

WHY SAUDI ARABIA? (BUSINESS ENABLERS)

Being one of the worlds Top 10 most competitive economies makes Saudi Arabia the perfect investment opportunity. But thats not the only reason why: Saudi Arabia is ranked 4th in the world for scal freedom and its the 7th most rewarding tax system in the world. The 7th freest labor market in the world according to the World Economic Forum. One of the worlds 25 largest economies (23rd) and the largest economy in the MENA region. One of the worlds fastest growing countries: per capital income is forecasted to rise from $20,700 in 2007 to $33,500 by 2020.

The investor applies for a reference number, and a commercial registration. Both applications can be done at one of the SAGIA ofces in KSA. As applicable, the investor submits an industrial land allocation application to the respective Royal Commission or the Saudi Industrial Property Authority, MODON. The investor should also apply to the gas regulator within the Ministry of Petroleum and Mineral Resources for the allocation of sales gas and/or ethane if required by the project. Once the land allocation and/or gas allocation is secured, the investor can submit a loan application to any Government organization from which nancing for the project will be sought. 3. FINAL STAGE: EXECUTION The investor develops a robust execution plan. Project execution begins with commencement of plant design and construction. The investor must apply for a commercial registration number-through the appropriate ofce of the Ministry of Commerce and Industry-when the plant is about to commence operations or the service offering is available. When the plant begins production or the service offering is available, all required documentation is submitted to Saudi Aramco for approval. Once the new manufacturer/service provider is approved, Saudi Aramco is ready to initiate the procurement process if prices are competitive, and delivery terms are acceptable.

TECHNICAL SUPPORT TO LOCAL MANUFACTURERS:

Support is provided for the manufacturing of oil and gas equipment throughout all stages. Before establishing the facility: To assist potential manufacturers to acquire technical capabilities in manufacturing specic products. During the preparation of the facility: To ensure that manufacturers meet minimum international and Saudi Aramco requirements. After commencing production: Provide continuous support to manufacturers to improve and promote their capabilities. 1. TECHNICAL REQUIREMENTS Compliance with international, national and Saudi Aramco standards. Compliance with best practices. Minimum engineering knowledge. International certications (ASME, API, etc.).

INCENTIVES FOR LOCAL AND FOREIGN INVESTORS

Except as otherwise noted and subject to limitations and/or exclusions published by the Saudi Arabian Government, the following incentives are provided to local and foreign investors: Can own 100 percent of their investment projects in the Kingdom of Saudi Arabia (KSA), as applicable. Shall enjoy all the benets, incentives and guarantees extended to nationals (100% Saudi owned) investments. Under the current Saudi Arabian Income Tax Law, companies shall pay a maximum of 20 percent tax

on corporate prots above SR 100,000 (U.S. $26,700). Subject to the provisions of the Saudi Arabian Income Tax Law and Companies Regulations, are allowed to repatriate 95% of their capital, prots and dividends (5% is deducted as a withholding tax and there are no currency conversion or currency export restrictions). May freely transfer shares. Can enjoy: Incentives provided under the Protection and Promotion of the National Industries Act, including exemption from customs duties on imports of machinery and equipment, raw materials and spare-parts if imported for industrial use. Preferential treatment for national products in governmental procurement. Can apply for industrial loans on favorable terms from the Saudi Industrial Development Fund (SIDF) or other lending agencies. Will benet from the Kingdoms WTO accession commitments and applicable bilateral investment protection and promotion agreements signed by the government. Subject to Saudization requirements, can sponsor foreign employees (i.e., to obtain entry and exit visas and residency and work permits) pertaining to the investment project. Can refer disputes to the Board of Grievances and Investment Disputes Settlement Committee. Can carry over current tax losses into future years to offset taxes on future prots. Can benet from non-imposition on personal income tax.

Shall receive the same treatment, protection and incentives accorded to a national investment since the Kingdom is a member of the Multilateral Investment Guarantee Agency (MIGA). Shall be provided pre-investment assistance by the Saudi Arabian General Investment Authority (SAGIA) including: Conducting feasibility studies for industrial projects. Providing information and statistics for investment projects within the scope of Saudi Arabias development plans.

INVESTMENT ENABLERS AT A GLANCE

Availability of low cost energy. Availability of low cost feedstock. Availability of developed industrial sites on short, medium, and long-term rental at nominal charges. Provision of basic utilities at government set rates. The SIDF is ready to provide interest-free loans up to 50% of project capital or up to SR 600 million (U.S. $160 million) whichever is lower. in addition to 75% for urban areas such as Southern and Northwestern regions. Availability of duty-free zone at Jiddah and Dammam Seaports. Promotion of non-oil product and service exports by the Saudi Export Development Center (established under the umbrella of the Saudi Council of Chambers of Commerce and Industry). Availability of nancial support from the Human Resources Development Fund (HRDF) for indigenous manpower employment, for vocationally qualied and non-qualied, for a maximum of SR 1,500 (U.S.

$400) per month during training, and up to SR 2,000 (U.S. $533) per month upon employment for up to 2 years.

Investor Assistance: A service provided to the investor by SAGIA to make staying in the Kingdom as enjoyable and stress-free as possible. Global Outreach: Through nine international ofces on four continents. These ofces can be found in Australia, China, the United States, the United Kingdom, Germany, France, Italy, Japan, and Singapore, with more in the pipeline. Asaleeb: A SAP-powered (CRM) solution that enables real-time information exchange between bankers, executives, lawyers, analysts, and government agencies.

GUIDELINES FOR LOCAL AND FOREIGN INVESTORS TO ESTABLISH MANUFACTURING OR SERVICES ENTERPRISE IN THE KINGDOM OF SAUDI ARABIA (KSA)
These guidelines summarize early assistance available to potential Foreign Investors who wish to establish oil and gas related facilities in the KSA. 1. ESTABLISH CONTACT WITH SAUDI ARAMCO: New investors need to initiate communication with Saudi Aramco (as per the Contact Information Table), to do the following: Discuss opportunities and seek advice. Explore alternative options. Request early technical acceptance of products, if needed. Request information on Saudi Aramcos past consumption. 2. CONTACT SAGIA TO UNDERSTAND KSAS ENABLERS AND INCENTIVES SAGIAs role is to grant the international investor with the investment license, and provide further information on incentives and guidance throughout the process. HOW CAN SAGIA HELP? Providing Business Support: Everything from advice on organizing visas and building regulations, to nancing and legal support. Business Facilities: SAGIA is planning four Economic Cities in key. Qualied Workforce: SAGIA can link businesses to the ready workforce.

OBTAIN AN INVESTMENT LICENSE FROM SAGIA

Complete Investment License Application Form Submit Application Form to Customer Relationship Manager Submit Application Form to License Evaluator for Approval Temporary Investment License is Issued Online registration at SAGIAs website www.sagia.gov.sa

Additional Requirements

Obtain Residency Card (Iqama) Through Labor Ofce Register with Ministry of Commerce & Industry (MOC) for Commercial Regulations

Prerequisite to complete Commercial Registration Requirements: Proposed company name Bank account details Articles of Association Iqama Register with Municipal Ofce/Labor Ofce Requirement for manpower recruitment

Register with Department of Zakat and Income Tax

Register with General Organization for Social Insurance

Commence Business in Saudi Arabia

Saudi Arabian General Investment Authority (SAGIA) Out of Kingdom Office Locations Website Call Center In-Kingdom Office Locations Dammam Riyadh Jiddah Toll free Number Departments Education Sector Energy Sector Health Sector Information and Communication Technology Sector Legal Life Science Sector Marketing & Media Sector Recruitment Transportation Sector 3. PREPARE FEASIBILITY STUDIES Local and foreign investors need to decide whether the opportunities are feasible: If feasible, go to step #4 to select a local partner, if needed. If not, go back to step #1 to discuss other options with New Business Development of Saudi Aramco. Phone

Contact Details Fax www.sagia.gov.sa +966 2 653 9510 Phone +966 3 881 2088 +966 1 448 4533 +966 2 657 1580 800 244 9990 email education@sagia.gov.sa energy@sagia.gov.sa health@sagia.gov.sa ict@sagia.gov.sa legal@sagia.gov.sa life_science@sagia.gov.sa marketing_dept@sagia.gov.sa recruitment@sagia.gov.sa transportation@sagia.gov.sa 4. SELECT LOCAL PARTNER(S), IF NEEDED Foreign investors may communicate their interest to the Saudi Chamber of Commerce to: Request potential local investors. Shortlist potential local investors. Select local investor. +966 2 657 2097 Fax +966 3 881 1990 +966 1 448 1234 +966 2 657 2097 +966 2 657 2097

Contact SAGIA offices at any Embassy of the Kingdom of Saudi Arabia worldwide

5. APPLY FOR INVESTMENT LICENSE, REFERENCE NUMBER AND COMMERCIAL REGISTRATION Foreign investors need to apply by themselves, or appoint a local partner, or local lawrm, at one of the SAGIA in-Kingdom ofces (please refer to the Tables in step #2), for: Investment License (Industrial or Services). Reference Number and Commercial Registration. 6. APPLY FOR INDUSTRIAL LAND, IF NEEDED Upon receiving the Investment License and Commercial Registration, the investor may apply for industrial land through MODON: Saudi Industrial Property Authority (MODON) runs and supervises all 18 of Saudi Arabias Industrial Cities, covering about 93 million square meters. MODON main role is to establish, develop, operate industrial cities and provide integrated services to meet investors needs.

amount of usage (by cubic meters) and location of the industrial city. It can be provided by the Ministry of Water & Electricity or through private companies. Ministry of Water: Rate of water depends on the amount of water used following specic groups. Private companies: Rate varies based on type of water (e.g., drinking water, waste water and industrial water) and the industrial city. Diesel: SR.0.36 [U.S.$0.096] per liter. Industrial Fuel Oil: SR.0.125 (U.S.$0.033) per liter. Liquid Gas: SR.2.81 (U.S.$0.75)/MMBTU.

ACQUIRING INDUSTRIAL LAND FROM (MODON)

Complete online registration and Land Request Once approved, MODON reserves the land No Investor pays fees Yes MODON issues a 4-month allocation letter MODON issues a request for factory drawing MODON reviews and issues an approval letter for the drawings Contract to be signed by both, MODON & Investor License is issued once the due rent is paid Objections on drawings will be returned to investor Via www.modon.gov.sa License should be for the same city in whichthe land is requested Attach: Copy of ID, CR and Industrial License Land is reserved for 15 days and fee payment is required

ADVANTAGES OF (MODON) INDUSTRIAL CITIES: Building license will be issued MODON provides various services to the tenants and potential manufacturers. Commercial and Industrial Rates: MODON offers a competitive annual rate within industrial cities compared to land elsewhere. The annual rental fees could be as low as SR 1 (U.S.$0.26) per square meter. Electricity: The fees follow: Starting from SR. 0.05 (U.S.$0.013) per KWH for residential use. Starting from SR. 0.12 (U.S.$0.032) per KWH for industrial use. Water: Fees depend on the source, type of water,

Building license will be issued

NOTE: Data illustrated above are valid as of published date.

Investors may also acquire industrial lands through The Royal Commission for Jubail and Yanbu (RCJY). Industrial Land Location Head Office, Riyadh Dammam 1st Saudi Industrial Property Authority (MODON) Dammam 2nd Riyadh 1st Riyadh 2nd Jiddah 1st Jiddah 2nd The Royal Commission for Jubail and Yanbu (RCJY) Jubail Contact Details Phone +966 1 283 1331 +966 3 847 3331 +966 3 812 1019 +966 1 446 0848 +966 1 265 2280 +966 2 636 4929 +966 2 636 4929 +966 3 341 4039 Fax +966 1 477 5235 +966 3 847 2509 +966 3 812 1118 +966 1 446 0779 +966 1 265 2059 +966 2 636 4712 +966 2 636 4712 +966 3 341 6209 www.rcjy.gov.sa www.modon.gov.sa Website

7. APPLY FOR GAS Investors need to prepare an execution plan to apply for gas allocation, if needed, via the following contacts: Industrial Land Location Saudi Aramco Ministry of Petroleum and Minerals Dhahran, East Park, Building 7002 Riyadh Contact Details Phone +966-3-862-5567 Fax +966-3-862-5585 Website
www.saudiaramco.com

+966-1-476-6930

+966-1-285-8753

www.mopm.gov.sa info@mopm.gov.sa

8. APPLY FOR LOAN Investors may apply for a loan if needed. This step could be initiated in parallel with step #7. INTRODUCTION TO (SIDF) The Saudi Industrial Development Fund (SIDF) provides nancial assistance in the form of short-term loans to investors in industry, in addition to offering technical, administrative, nancial, and marketing advice. (SIDF) SUPPORT TO BORROWERS Financial Management: To help project sponsors to select and implement suitable nancial systems. Operation Management: The funds consultants help project sponsors to dene their goals and objectives, select a viable business plan, implement proposed policies, hire qualied personnel, and apply systems and controls, which lead to the success of the project. IT Consultancy: ITD provides technical advice to maximize the benets of the new Information

Technologies as part of the funds loan request processing procedure. Technical Management: The funds technical consultants provide relevant consultation on various activities aimed at increasing production efciency. Marketing Management: SIDF marketing consultants provide assistance in collecting and analyzing marketing information to build a solid base for management decisions.

SIDF-BORROWERS CASH FLOW: Description Analysis and Evaluation by SIDF. Disbursement payments (Borrower has to submit all bills to get the payment). Visits by SIDF every 4-6 months. Repayments (the first one starts after 1-1.5 year from production). Follow-up by SIDF every 4-6 months until all the repayments completed. Cash Flow Riy- (1.5%-2.5%) of the total loan by SIDF deducted from the first loan disbursement.adh Riy+ 50% of the borrower expenses.adh - $1,000 to $5,000 for each visit (through check). - % of the total Repayment agreed on. - $1,000 to $5,000 for each visit (through check).

SIDF LOAN APPLICATION

1. Application Form 2. Industrial License 3. Commercial Registration 4. Feasibility Study Application Registration Preparation of Feasibility Study

Marketing Consultancy Division Preparation of Market Report Research Division Conducting Market Research Non Approved

Technical Consultancy Division Preparation of Technical Reports

Loan Committee

Files

Board of Directors/ Mgt. Committee Auditing and Financial Analysis Division Auditing Expenditures Credit Division 1. Loan Disbursement 2. Monitoring of Performance and Loan Repayment Follow-up

Issuance of Committee Letter

Legal Department 1. Signing of the Loan Agreement 2. Documentation of Security

Industrial Land Location Saudi Industrial Development Fund (SIDF) Riyadh

Contact Details Phone +966-1-477-4002 (Ext. 131, 127, 101) Fax +966-1-477-5138 Website and email www.sidf.gov.sa sidf@sidf.gov.sa

9. VALIDATE REQUIREMENT AND FACILITY LAYOUT VIA NEW BUSINESS DEVELOPMENT Investors need to validate Saudi Aramcos requirements and dene the product mix and share facility layout with Saudi Aramco, where New Business Development (please refer to the Table in step #1) will coordinate the validation internally. 10. START CONSTRUCTION Investor then begins construction of the facility. HR Fund Location Human Resources Development Fund (HRDF)

11. APPLY FOR HUMAN RESOURCES DEVELOPMENT FUND Investor could apply to the Human Resources Development Fund (HRDF), during recruitment and to obtain monthly nancial support for certain periods, for hiring qualied professionals and technicians and unskilled Saudi personnel.

Contact Details Phone Fax Website and email

www.hrdf.org.sa complaints@hrdf.org.sa

Dammam

+966-3-833-0765

+966-3-835-4689

Through HRDF website www.hrdf.org.sa

Employer completes online registration form HRDF reviews and approves registration details Employer receives conrmation and login details Employer requests nancial support online HRDF reviews and approves nancial support request

12. INITIATE PLANT APPROVAL AS A LOCAL MANUFACTURER Investors need to coordinate with New Business Development to initiate approval for their new facility as a local manufacturer. By then, the new manufacturers/service providers would receive preferable treatment and receive the Request for Quotation/Bid, provided they are able to meet delivery schedules, and their prices are competitive and fall within equivalent guidelines.

By then, the new manufacturers/service providers would receive preferable treatment and receive the Request for Quotation/Bid, provided they are able to meet delivery schedules, and their prices are competitive and fall within equivalent guidelines.

A WORLD OF OPPORTUNITY: SAUDI ARAMCO

To maintain the Companys production at optimal levels as well as support the robust capital program, Saudi Aramco Materials Supply procures and manages a full range of material commodities and services. We strive to deliver world-class procurement and supply chain excellence to Saudi Aramco. An organization with a global presence, Materials Supply pursues business relationships based on cooperation, trust, reliability and communication. Materials and services are procured through manufacturers, suppliers and contractors that meet high quality standards, exceptional levels of service, competitive pricing, solid delivery performance, effective after-sales support, and efcient supply chain management programs. Saudi Aramco values transparency and long-term cooperation and stands ready to collaborate with manufacturers, contractors and suppliers in addressing challenging safety and environmental issues. Saudi Aramco continues to promote long-term efforts to stimulate and support development of the local economy of Saudi Arabia. We will now outline the policies used by Materials Supply to manage our global supply chain. If your company is interested in service related opportunities with Saudi Aramco please thoroughly review the following section, Contracting Policies and Registration Procedures. Information related to opportunities for suppliers can be found in the section titled Purchasing Policies and Registration Procedures.

must be adhered to and a high standard of ethics and fairness shall be maintained. 2. All contracts must be in writing and shall be executed before committing work to a contractor, or a contractor starting work. 3. Lump Sum contracting is normally the preferred contract form when it can be properly used. 4. Competitive bidding will be used whenever possible to select the technically and nancially qualied contractor whose bid represents the least overall cost to Saudi Aramco. Negotiated contracting shall only be used in exceptional circumstances and must be adequately justied and approved in advance by Saudi Aramco Management. 5. For work to be performed in Saudi Arabia, Saudi Aramco will normally consider a contractor's technical and nancial qualications and will award contracts to only those contractors who are properly registered or licensed to conduct business in Saudi Arabia. 6. It is Saudi Aramco's policy to encourage the continued development of a strong, broad-based local contractor community in its various areas of operations. In support of this policy, the Company distributes Saudi Aramco's contract work widely as possible among qualied Saudi Arab contractors. B. CONTRACTOR RELATIONS LOCAL (IN-KINGDOM) CONTRACTORS Saudi Aramco requires current detailed information on Saudi Aramco contractors. Contractors new to Saudi Aramco may register their interest through the Saudi Aramco Contractor Registration Web site (http://esr.aramco.com). The registration process merely provides Saudi Aramco with current contact

CONTRACTING POLICIES AND REGISTRATION PROCEDURES

A. CONTRACTING POLICIES The following policies are highlighted for your information: 1. Saudi Aramco policies regarding business ethics

and other basic information about the contractor. After successful registration with Saudi Aramco, contractors will be granted online access to the Electronic Contracting Network (ECN) system. ECN is described in details in the next section.

disclose any information contained in a screening inquiry and an Invitation for Proposal to a third party without obtaining Saudi Aramco's prior written approval. In this regard a contractor may be required to sign a condentiality agreement. D. ELECTRONIC CONTRACTING NETWORK (ECN) The Electronic Contracting Network (ECN) is a comprehensive and user-friendly Web-based system that automates almost all business functions and activities that occur during the procurement of contracts and enables Saudi Aramco and its contractors to interact with each other online. ECN is accessible through the Saudi Aramco Vendor Portal (http://vendor.aramco.com). In addition, ECN will provide each Saudi Aramco registered contractor with their own Contractor Prole section in which they can present their qualication type information and update such information online at anytime from anywhere. ECN has the following sections:

INTERNATIONAL CONTRACTORS Contractors who wish to do business with Saudi Aramco should communicate to the appropriate Saudi Aramco afliate company, Aramco Services Company (ASC), Aramco Overseas Company (AOC) and Aramco Asia Company (AAC) located in their geographical area shown in the contact table below. C. CONFIDENTIALITY Saudi Aramco considers all aspects of any contractor screening inquiry and an Invitation for Proposal to be condential, which includes all bid documents, attachments thereto and all drawings. A contractor must agree before responding to a screening inquiry and bidding on Saudi Aramco work to limit the disclosure of information contained therein to only those employees who require it either to respond to an inquiry or to prepare a bid. A contractor must also agree not to

1. ONLINE CONTRACTOR REGISTRATION Contractors will be able to register with Saudi Aramco online and conveniently present their legal contact, as well as other required information. Each registration application will be reviewed and approved online by designated Saudi Aramco employees. Upon processing each registration request, each contractor ofcer designated by the contractor to interact with ECN (Designated Contact) will receive an ECN "USER ID" and temporary password that will enable the contact to access ECN, enter information in their company's Contractor Prole, and interact with Saudi Aramco in connection with specic contract procurements. Contractors are also required to update their information at least once annually and whenever substantive changes occur.

2. CONTRACTOR PROFILE This section will enable contractors to present comprehensive qualication-type information, and update such information online at any time. The Contractor Prole section will enable Saudi Aramco to instantly view contractors' latest information online. Therefore, it will be in each contractor's best interest to continuously update this section and ensure that it accurately communicates the contractor's capabilities. 3. CONTRACT ROOM The Contract Room is a virtual workplace that provides comprehensive automation to almost all activities and functions that occur during a contract procurement process. The Contract Room will be the main venue where all concerned Saudi Aramco organizations will interact with each other and where contractors will interact with Saudi Aramco. Both Saudi Aramco and Contractors will nd numerous improvements and benets resulting from interacting online via the Contract Room. 4. USER HOME PAGE ECN will provide each user a personalized Home Page, through which the user can access any of his contract rooms, pending tasks and other useful functions and information. All information supplied by the contractor to Saudi Aramco is kept condential and made available only to those organizations within Saudi Aramco that require such information. Financial information is reviewed and retained only by Saudi Aramco's Treasurer's organization. E. SAUDI ARAMCO CONTRACT PROCUREMENT PROCESS The Saudi Aramco contract procurement process is

described in next sections. It is Saudi Aramco's intention to make clear that communications during all stages of contract procurement between bidders and Saudi Aramco must be authorized and conducted by the Contracting Department. F. BID SLATE DEVELOPMENT Saudi Aramco uses four different methods for procuring contracts as follows: 1. Open Bidding-A notice is posted on Saudi Aramco Bulletin Boards in the ECN. This Information for Bidder Notice provides general overall description of the work, any pre-qualication requirements that must be met and the date of the Job Explanation Meeting. Any contractor may bid when this procurement method is used. 2. Open Solicitations with Selective Bidding-These open solicitations are also posted on the Saudi Aramco Bulletin Board available in the ECN to allow all contractors the equal opportunity to indicate interest in submitting a bid. After a careful analysis of the responses received for the solicitation, Saudi Aramco will select those contractors considered to be best qualied for bidding the work and directly extend to them an invitation to the Job Explanation Meeting. This is the Company's most common and preferred procurement method. 3. Restrictive Selective Bidding-Saudi Aramco reviews the record of contractors who have indicated capabilities in a particular type of Saudi Aramco work and then selects those contractors considered most capable of performing the work. Saudi Aramco uses this method when it determines that the contract requirements are so stringent that only a few contractors would qualify or the high cost of preparing a bid indicates that size of the bid

slate should be limited. 4. Sole Source-Saudi Aramco does not favor this means of contract procurement, and it is used only after a careful review of the unique circumstances that may justify it. Sole Source procurement is justied, for example, when a contractor provides a unique proprietary service, when there is an unusual urgency to the work, or when a contractor has mobilized and the limited work scope does not justify mobilizing another contractor. For a contractor's commercial bid to be considered for any contract, the contractor must be considered qualied to perform the work. Saudi Aramco reviews technical and nancial qualications and determines whether a contractor is qualied. Preliminary contractor capabilities are determined primarily from the ECN including contractor performance reports on other contracts. Additional pre-qualication or technical proposal information unique to the specic procurement may be requested from the contractor. Saudi Aramco's Treasurer's Organization determines the nancial capabilities of contractors. Contractors with assets above $10,000,000 who wish to be considered for contracts must also submit current audited nancial statements to the Treasurer's Organization. The Treasurer's Organization maintains all nancial information in a strictly condential manner. G. JOB EXPLANATION MEETING A Job Explanation Meeting (JEM) is held to explain the contract, describe the scope of the work and to answer any questions concerning the contract or the procurement process. If possible, before the Job Explanation Meeting, the complete bid package is distributed to the bidders for review. This package consists of a pro forma contract, the scope of work including plans and specications of the proposed

project, general instructions to the bidders for preparing the bid, and any special instructions that the particular project may require. In many cases, the bidders are invited to visit the proposed contract work site to familiarize themselves more fully with the work requirements. During Job Explanation Meetings and job site visits bidders are encouraged to ask questions. If answers to these questions are not readily available, both the question and the answer are communicated to all bidders in writing. Questions that arise following the Job Explanation Meeting must be submitted in writing to the Contract Representative. The Contract Representative will respond to the questions in writing and provide a written copy of the questions and answers to all bidders. The Contract Representative will also transmit to all bidders, in writing, any modications to the bid package during the bidding period. H. BID CLOSING DATE AND BID OPENING The Instructions to Bidders will clearly specify a bid closing date and a time. Bids must be deposited according to the Instructions to Bidders in the Contracting Department's locked bid box. The bid boxes are located in North Park II Building 3301, Contracting Department's Reception Center Room # A162, Dhahran. It is important that bids be submitted in duplicate and that they are clearly labeled in accordance with the instructions. In many cases bidders are requested to submit separately two proposals, a technical proposal and a commercial proposal. In these instances, the bidder's technical proposal is evaluated rst and the bidder's commercial proposal will be evaluated only if the technical proposal is determined to be sufcient for the contract requirements. All bid openings are conducted by the Contracting

Department and the Finance Organization in strict compliance with Saudi Aramco procedures designed to assure condentiality and fairness to all bidders. Following the bid opening there will be no information released on the progress of the bid evaluation. This information is strictly condential. I. NEGOTIATION OF COMPETITIVE BIDS Bidders should be aware that Saudi Aramco does not negotiate base bids that have been solicited on a competitive basis. Exceptions to this policy are very rare and if at all considered require the approval of Saudi Aramco's Corporate Management. Saudi Aramco assumes that a bidder's rst price is its best price and its last price. Accordingly, the Company does not expect contractors to include a contingency for negotiation because such negotiations with respect to the bidder's basic proposal will not take place. Saudi Aramco may conduct clarication meetings with one or more bidders before award, to ensure that both parties have a clear understanding of the work and the terms and conditions under which it will be performed. Base bids submitted in competitive circumstances are not negotiated or changed at these clarication meetings. J. CONTRACT AWARD When the bid evaluation has been completed by a Saudi Aramco Bid Review Team, the recommended award is presented to Saudi Aramco Management for approval. Procurement plans and award recommendations are reviewed by Saudi Aramco Corporate Management for high value contracts. After the contract has been signed on behalf of Saudi Aramco, two original copies are presented to the selected bidder for signature. The contract is not binding unless signed by both Saudi Aramco and the contractor. After a contract has been awarded, all unsuccessful

bidders are notied by telex or facsimile for open bidding, by general announcement on the Saudi Aramco Bulletin Board located in Dhahran or Jiddah. K. DEBRIEFING MEETING An unsuccessful bidder may, request in writing from the Contracting Department, that a meeting be held to determine why the contractor's bid or pre-qualication proposal was not successful. Saudi Aramco encourages such meetings because they help contractors improve subsequent proposals. Proposals from competitors are never disclosed to the contractor requesting the debrieng. A contractor will be informed why Saudi Aramco decided not to award it the contract or select it for a bid slate. Debrieng for unsuccessful pre-qualication will not be held until after the job explanation meeting. Debrieng for unsuccessful contractors will not take place until after contract award. If a debrieng meeting is requested, it should be done within one month after the contractor is informed it was unsuccessful. This is to ensure that Saudi Aramco has retained all the relevant documentation to make the debrieng meaningful. L. CONTRACT PERFORMANCE AND ADMINISTRATION Day to day administration of the contract is the responsibility of the contract proponent organization. Contract changes are negotiated with the contractor as needs arise and take the form of either change orders or amendments to the base contract. M. CLAIMS Saudi Aramco contracts also provide for the fair and equitable resolution of disputes that may arise between Saudi Aramco and contractors. The Claims and Technical Services Unit of the Contracting Department is

responsible for the resolution of claims. Claims must be led according to the terms of each contract. Resolution occurs through Saudi Aramco's claim process and approved by the Saudi Aramco contract signatory. Contractors have the right to appeal that decision through the establishment of a Saudi Aramco Contract Dispute Settlement Board (Appeal Board). In addition, Saudi Aramco contracts normally contain arbitration provisions. N. APPLICABLE LAWS AND MANPOWER Contractors are expected to comply with all applicable governmental laws and regulations and to structure their bids accordingly. Saudi Aramco strongly encourages its contractors to employ Saudi Arab nationals for the performance of Saudi Aramco contract work. When the contractor nds it necessary to employ foreign labor, compliance with the Saudi Arabian Government regulation and control of visas and Iqamas is the responsibility of the contractor. Saudi Aramco does not provide assistance in this regard. O. CONTRACTOR ASSISTANCE Questions regarding specic contract procurement should be referred to the Contract Representative in the Contracting Department responsible for that procurement. For general information or for submitting updated contractor information, contractors may contact the Contractor Relations and Document Control Unit in the Contracting Department, Dhahran or the Contracting Services Unit in Jiddah. P. CONTRACTING SUMMARY Saudi Aramco's major contracting objectives are to complete the work on time in conformance with demanding technical standards and at the least overall cost to Saudi Aramco. To meet that objective, Saudi

Aramco conducts its contract procurement in a fair and equitable manner and endeavors to create and maintain a procurement environment attractive to qualied, competitive contractors. Saudi Aramco welcomes all qualied contractors to compete for Saudi Aramco contracts.

PURCHASING POLICIES AND REGISTRATION PROCEDURES

A. PURCHASING POLICIES Saudi Aramco pursues best practice solutions for developing reliable suppliers to obtain best value, quality and supply chain security. These objectives are being achieved through a variety of strategies including agreement based procurement, cost-effective long-term supply contracts, supplier managed inventory programs and innovative solutions such as corporate level agreements to consolidate materials, spare parts and services spend. The continued focus is to support growth of Saudi Arabias national economy by encouraging in-Kingdom manufacturing and development of local stocking distribution. B. LOCAL CONTENT FOCUS Saudi Aramco preferentially purchases products manufactured in Saudi Arabia in accordance with various commercial considerations such as price, quality, availability, marketability and transportation, while also affording foreign-owned enterprises adequate opportunity, in conformity with customary practices, to compete for such purchases.
HIGHEST PREFERENCE Goods & Services Originating From National Companies Goods Stocked By National Companies Foreign Goods & Services Provided By National Companies Goods & Services Provided By Foreign Companies LOWEST PREFERENCE

We envision local manufacturing expanding to provide a signicantly greater percentage of Saudi Aramco material requirements with local stocker distributors providing the greatest portion of the balance. These close relationships will foster continued development of our national supply and service base into recognized top echelon providers within the Oil & Gas industry. C. CAPITAL PROGRAM SOURCING A large percentage of all Materials and Services to support Saudi Aramcos massive capital program and various joint venture partnerships are sourced by Lump Sum Turn Key (LSTK) contractors worldwide. To obtain information on supply chain opportunities in these areas please communicate with the respective contractor directly. D. KEY SUPPLY CHAIN STRATEGIES To meet the challenge of promoting the development of local sources of supply while achieving Saudi Aramcos commercial requirements, Materials Supply is pursuing a number of key supply chain strategies: Competitive Bidding supports transparency and the commercial interests of both Saudi Aramco and the local manufacturer/supplier community. Where appropriate, total cost of ownership will be the basis for selection, rather than initial acquisition price. Made in Saudi Arabia is in the Companys commercial interest and essential to the long-term growth and economic well-being of the Kingdom and will be accomplished via promotion of Foreign Direct Investment (FDI) and support of local in-Kingdom manufacturing. Utilizing and supporting Best-in-Class Suppliers.

Expanding purchase agreement coverage by utilizing cost-effective lean procurement practices. Increasing National Logistics and Warehousing Capabilities. Maximizing e-Procurement and e-Content. Developing Local SCM skills and expertise of Saudi Aramco Material Supply personnel, our customers, and our valued suppliers. E. PURCHASING GUIDELINES The citizenship role of Saudi Aramco in supporting development of the national economy is closely associated with the evolving capabilities of the national market to effectively support Saudi Aramcos requirements for materials, products and services on a competitive basis. Saudi Aramco sourcing activities are governed by the following: All purchasing transactions are to be conducted fairly, honestly, with high integrity and in accordance with the highest ethical standards and all applicable laws. Considering quality, delivery and price, reliability of vendor, operational costs, in-Kingdom after sales support, end-use cost, work simplication and standardization in making placement decisions. Procuring goods from nancially and technically qualied and reliable sources. Focusing on total cost of ownership. Encouraging the Saudization of its suppliers work force. F. SUPPLIERS CONTRIBUTION Suppliers represent an integral part of the Saudi Aramco supply chain by:

Adding value through product quality and support, competitive pricing, and focusing on lean supply chain models. Utilizing enabling technologies that allow supply chain participants to effectively access relevant supply chain information. Supporting effective Human Resource development/training programs for their employees. Seeking new opportunities for local manufacturing. Building a robust Information Technology infrastructure with e-business transaction capability. G. SUPPLIER RELATIONS The business relationship between Materials Supply, suppliers and contractors requires sustained and focused commitment to continuously improve service and efciency. Materials Supply has implemented effective supply chain strategies and industry best practices as part of normal procurement activities. Together, suppliers and Saudi Aramco provide consistent value and service by: Developing value-added relationships and greater levels of trust. Delivering greater customer satisfaction. Reducing inventory throughout the supply chain. Conducting joint process improvement meetings. Deploying technology effectively. Sharing information. Implementing cost reduction opportunities Continuously improving all SCM practices.

H. LOCAL INDUSTRIAL DEVELOPMENT UNIT One of Saudi Aramcos corporate strategies is to support growth of the Kingdoms economy by promoting local manufacturing. Saudi Aramco Materials Supply has recently created a Local Industrial Development Unit (LIDO) to facilitate and maximize Saudi Aramcos purchase of commercially and technically competitive locally manufactured materials. The (LIDO) is available to provide support to local manufacturers and promote new business opportunities by sharing information on business opportunities and collaboration. In addition, Saudi Aramco has established the New Business Development (NBD) organization. The main mission of NBD will be to enhance the companys potential to increase revenue through all means permitted under the Saudi Aramco articles of incorporation and to support the kingdoms goals of maximizing economic and social benets from its natural resources. NBD is responsible for identifying, receiving, evaluating, shaping and closing new business deals which will create value for Saudi Aramco and will foster the development of the Kingdom (economic growth, increased private sector participation, job creation). I. REGISTRATION PROCESS To conduct business with Saudi Aramco, potential suppliers and manufacturers must register online (http://ebusiness.aramco.com) with Materials Supply to obtain a vendor identication number. The registration steps for local manufacturers and suppliers are summarized below. J. REGISTRATION AS A LOCAL MANUFACTURER Supplier Registration Unit (SRU) acts as the single point-of-contact for local manufacturer registration with Saudi Aramco. To commence the registration process the manufacturing plant must be fully operational and meet

either International Organization for Standardization (ISO) or Saudi Arabian Standards Organization (SASO) technical qualications. REQUIRED DOCUMENTS To register a local manufacturing facility the following documents must be submitted to SRU (See Contact Information Table): Acknowlegment of Saudi Aramcos supplier code of conduct. Local Manufacturer Registration Form. Emergency & Fire Response Plan. Civil Defense License*. Uncontrolled copy of the Quality Management System (QMS) Manual as per latest ISO 9001 year 2000 requirements. List of quality control procedures. Organization chart including QA/QC Department. List of major users of the products with address, contact names & phone number. Brochures, technical data, and specications for each product. List of major equipment installed at the manufacturing plant. Valid Zakah certicate. General Organization for Social Insurance (GOSI) certicate*. Valid commercial registration*. Factory location map on Company Letterhead. Copy of Industrial licenses and any other government permits*.

Copies of National ID or Iqama (if applicable) of all owners/partners. Copy of the Articles of Association (For company only)*. Bank Financial Statement and account information indicating Bank name, address, and account number (Requirements with* must be submitted as original or authenticated documents for review and verication). The above documents should be submitted in four CDs and four hard copies for New Registration. Names of Saudi Aramco employees and their immediate relatives (spouses, parents, sons and daughters) who are partners or have an ownership stake, or are your employees must be fully disclosed. APPROVAL PROCESS The above documents will be thoroughly reviewed to ensure completeness and accuracy. A factory visit will be scheduled whereby a preliminary screening evaluation will be conducted. Any corrective action that may be required will be reported to the facilitys management. The concerned Saudi Aramco organizations will review the plants technical documentation and QMS manual when it is determined that the factory is ready for comprehensive inspection. Pending satisfactory completion of this review an ofcial plant survey will be scheduled. The ofcial survey ndings will be communicated to the plants management noting any deciencies requiring corrective action. If results of the plant survey are acceptable, notication in the form of an approval letter will be sent to the plants management indicating approval for specic products and providing a unique vendor identication number. It is important to

note that registration as an approved manufacturer with Saudi Aramco is not a guarantee of future business. K. REGISTRATION AS A LOCAL VENDER SRU is the single point-of-contact for local supplier registration with Saudi Aramco. To commence the registration process as a local supplier, the following documents must be submitted: Acknowlegment of Saudi Aramcos supplier code of conduct. A letter of introduction identifying and detailing the vendors business activities. Completed Saudi Aramco Registration Form. Valid copy of the Commercial Registration (CR) in the city in which the company is to be registered allowing the company to trade in the offered materials*. Valid Zakah certicate. Original Copy of the General Organization for Social Insurance (GOSI) certicate*. Copies of National ID or Iqama (if applicable) of all owners/partners. Copy of the Articles of Association in case there is more than one owner (shareholders). Civil Defense Certicate*. Emergency & Fire Response Plan. A bank letter of reference, conrming that the registering supplier would be granted suitable credit facilities. A map showing the location of the registering suppliers ofce and warehouse on ofcial Company letterhead. Authenticated agency agreements from

in-Kingdom and/or out-of-Kingdom manufacturers, already pre-qualied and/or registered with Saudi Aramcos overseas ofces, in case the supplier desires agency status. Please Note:* Requirements must be submitted as original or authenticated documents for review and verication. Saudi Aramco Materials Supply will evaluate all related documents and, if necessary, conduct a survey of the potential suppliers premises. Once approved as technically and commercially acceptable, the supplier will be registered with Saudi Aramco Materials Supply by assignment of a unique vendor identication number. It is important to note that registration as an approved Saudi Aramco supplier is not a guarantee of future business. L. REGISTRATION AS AN INTERNATIONAL MANUFACTURER Manufaturers wishing to become an approved Saudi Aramco supplier or existing Saudi Aramco approved international manufacturers offering additional products should communicate to the appropriate afliated company, ASC, AOC or AAC located in their geographical area (see Contact Information Table). ASC, AOC or AAC will evaluate the information provided and determine whether there is a business need for additional products/suppliers. The registration documents will be forwarded to Strategic Procurement and Sourcing Division (SPSD) for strategic sourcing for extensive evaluation in terms of technical, nancial and strategic needs. Once, SPSD decides that the applying manufacturer is a potential source the approval process is initiated. Concerned Saudi Aramco organizations will review the plants technical documentation and QMS manual when it is determined that the factory is ready for comprehensive inspection. Pending satisfactory

completion of this review an ofcial plant survey will be scheduled. The ofcial survey ndings will be communicated to the plants management noting any deciencies requiring corrective action. If results of the plant survey are acceptable, notication in the form of an approval letter will be sent to the plants management indicating approval for specic products and providing a unique vendor identication number. It is important to note that registration as an approved manufacturer with Saudi Aramco is not a guarantee of future business. M. INTERNATIONAL VENDORS Suppliers wishing to become an approved Saudi Aramco vendor or existing international suppliers offering additional products should communicate to the appropriate afliated company, ASC, AOC or AAC, located in their geographical area (see Contact Information Table). ASC, AOC or AAC will evaluate the information provided and determine whether there is a business need for additional products/suppliers. Any further evaluation will depend on whether the supplier is deemed nancially and technically acceptable. International suppliers who demonstrate that products offer signicant technical or commercial benet to the Company will be closely considered. N. INTERNATIONAL SUPPLIER AGENCY ARRANGEMENTS Prior to doing business with Saudi Aramco the international supplier must rst register with Saudi Aramcos out-of-Kingdom afliate. Supplier located in North or South America should register with Aramco Services Company (ASC). Suppliers located in other geographical regions should register with Aramco Overseas Company B.V. (AOC) see Contact Information table. Suppliers in AAO giographical region see Contact Information table. For local vendors to be registed/approved as an agent to registered/approved

international manufacturer, should present Agency Certicate issued by Minsitry of Commerce and Industry (MOCI), covered by a writtent request signed by authorized personnel and authenticated by Chamber of Commerce. Any change to exclusive agency agreements with the Saudi vendor (including termination) should be immediately communicated to Saudi Aramco. International suppliers are expected to fulll all existing purchase order obligations with their former Saudi vendors regardless of changes in agency agreements and associations. O. DISCLOSURE Any changes in company ownership, commercial activities, and contact information by registered suppliers, whether they are vendors or manufacturers, should be communicated immediately to Supplier Relations Management Unit. Requests for changes in company names and ownership related to the death of an owner must include a Commercial Registration (CR) cancellation certicate obtained from the Ministry of Commerce before registration under a new CR can be processed. Saudi Aramco should be informed of the owners death within sixty (60) days or risk indenite suspension. Every supplier (international or local) must disclose to Saudi Aramco any and all ownership or commercial relationships which suppliers company or establishment and its owners and immediate family members have with any Saudi Aramco employee, his/her immediate family members and any business enterprise owned or controlled by any of them. Such disclosure shall include, but not be limited to, information on ownership stakes and/or positions held by such immediate family members in the suppliers business and the nature of their employment, if any. Every supplier must immediately disclose to Saudi Aramco any employee end of service

case for those who have been granted access to Saudi Aramcos vendor portal. All changes in this information are to be promptly reported to allow Saudi Aramco to determine if any potential conicts of interest exist. P. AUTHENTICITY OF DOCUMENTATION All suppliers (international and in-Kingdom) must attest to the accuracy and completeness of all documentation and submittals to insure information provided is correct, up-to-date, and accurate. Noncompliance will delay the registration process and submittal of fraudulent or forged information will be grounds for indenite suspension. Q. SUPPLIER PERFORMANCE SUPPLY CHAIN MANAGEMENT IS A KEY SUCCESS FACTOR FOR SAUDI ARAMCO Saudi Aramco established new team their full time job is to Sustain high supplier performance and to enhance the performance of low performing suppliers. Supplier Performance Unit (SPU) is chartered to ensure a portfolio of best in class suppliers to support Saudi Aramco operations. Supplier performance evaluation can lead to supplier development with the potential for reducing costs, mitigating risks, driving continuous improvement, and increased agility. SPU has two specic goals aiming to have a portfolio of reliable suppliers to support Saudi Aramcos operations and projects: Sustain high supplier performance: Supplier Performance Unit (SPU) will monitor the suppliers that perform well, to ensure that they continue to excel. This will be achieved by helping the suppliers to identify and overcome rising problems or obstacles in a timely manner. SPU will also implement a recognition and incentive program to propagate high performing suppliers.

Performance enhancement of low performing supplier: Supplier Performance Unit (SPU) in collaboration with internal stake holders will closely monitor low performers to identify root causes and agreeing on corrective actions to bridge the gaps in given time. The supplier performance Unit envisages itself as the entity primarily responsible for the performance monitoring of Saudi Aramco Supplier base. The unit focuses on the following specic set of roles and responsibilities within Materials Supply: Adapt industry best practices and technologies for Suppliers performance monitoring. Collaborate with internal stakeholders (buyers, customers, Vendor Inspection, and Consulting Services) to improve suppliers performance. Evaluate, measure and monitor supplier performance utilizing Supplier Scorecards(KPI). Set protocols to inform the suppliers of their. performance and maintain a positive reinforcement environment to encourage optimum performance. Coordinate and participate in process improvement initiatives. Develop and implement supplier incentive program. Conduct counseling sessions and periodic meetings with suppliers in coordination with other stakeholders to encourage collaborative performance management. R. SAUDI ARAMCO SUPPLIER PORTAL Saudi Aramco is progressively using e-Procurement as a means to conduct transactions and real-time tracking of key procurement information. The Supplier Portal is the main electronic communication tool between Saudi

Aramco and its suppliers and serves to speed the ow and improve the accuracy of key supply chain information between stakeholders. All registered Saudi Aramco Suppliers should maintain a high-speed Internet connection to facilitate access to the Saudi Aramco Supplier Portal and possess the capability to provide and manage Web-based catalogs. All Portal access requests should be forwarded to (03) 874 0320 or (03) 874 0841. Technical questions dealing with expired passwords or accessing the portal should be directed to: supplier-portal@aramco.com or call 872-2222( IT Help Desk). Suppliers are responsible for notifying SRU of any employees end of service case that have been granted access to the Saudi Aramco Supplier Portal. Saudi Aramco and our supply chain partners understand that business dynamics are changing globally and the allocation of adequate material resources, employee development and robust Information Technology infrastructures are key to efciently managing the complex supply chain.

CONCLUSION
In closing, we thank you for taking time to read this guide and for your interest in joining the Saudi Aramco Supply Chain team. We look forward to working with you in the future to build strong relationships and efciently manage our global supply chain. We look forward to your questions and encourage suggestions on improving our booklet

CONTACT INFORMATION
Country/ Company
Saudi Arabia/ Saudi Aramco

Function
Local Industrial Development

Area of Responsibility
Saudi Arabia

Address & Phone/Fax Numbers

Local Industrial Development Unit Saudi Aramco Box 77-X - North Park 1 Dhahran 31311, Kingdom of Saudi Arabia Tel: +966-3-874-1664 General Line: +966-3-8740609 Fax: +966-3-874-0015 Email:LOCAL-CONTENT@ARAMCO.COM Supplier Performance Unit Saudi Aramco Box 77-X-North Park 1 Dhahran 31311, Kingdom of Saudi Arabia Tel: +966-3-874-0061, Fax: +966-3-874-0015 Email:supplier-performance@aramco.com New Business Development Fax: +966-3-874-1734 E-mail: NBD-L&C@aramco.com Supplier Registration Unit Room A-119, Saudi Aramco Box 87 - North Park 1 Dhahran 31311, Kingdom of Saudi Arabia Tel: +966-3-874-0321 General Line: +966-3-874-0958 Fax: +966-3-874-0015 Email:Manufacturer-registration@aramco.com Manufacturers Online Registration: http://ebusiness.aramco.com/ Supplier Registration Unit Room A-119, Saudi Aramco Box 87 - North Park 1 Dhahran 31311, Kingdom of Saudi Arabia Tel: +966-3-874-0799_General Line:+966-3-874-0373 Fax: +966-3-874-0015/0335 Email:Vendor-registration@aramco.com Vendor Online Registration: http://ebusiness.aramco.com Contractor Relations Counter (R-162) North Park 2, Dhahran 31311 Tel:+ 966-3- 874-2287/2457 Fax:+966-3-874-2260 Electronic Contracting Network IK Registration: http://esr.aramco.com OOK Registration and general inquiries: Contractor-registration@aramco.com

Saudi Arabia/ Saudi Aramco

Supplier Performance Management

Saudi Arabia

Saudi Arabia/ Saudi Aramco Saudi Arabia/ Saudi Aramco

New Business Development Manufacturers Registration

Saudi Arabia

Saudi Arabia, other GCC countries, and the Middle East, Egypt, Kenya, Somalia and Sudan

Saudi Arabia/ Saudi Aramco

Vendor Registration

Saudi Arabia

Saudi Arabia/ Saudi Aramco

Contractors Registration

Saudi Arabia

Country/ Company
USA/Aramco Services Company

Function
Manufacturers & Suppliers Registration

Area of Responsibility
The Americas (Western Hemisphere)

Address & Phone/Fax Numbers

Aramco Services Company (ASC) MS 549, 9009 West Loop South, Houston Texas 77096, USA Tel: +1 (713) 432-5555, Fax: +1 (713) 432-4716 Strategic Sourcing Email: stratsourcing@aramcoservices.com Website: www.ascstrategicsourcing.com Supplier Relations Group Email: Beatrice.garza@aramcoservices.com Aramco Services Company (ASC) Tel: +1 (713) 432-4000 Email: contractorregistration@aramcoservices.com Website: www.aramcoservices.com Aramco Overseas Company B.V. (AOC) The Hague Ofce Strategic Sourcing Scheveningseweg 62 - 66,2517 KX The Hague, The Netherlands Tel:+31 (0) 88 262-2000 Fax:+31(0) 88 262-3000 Email:aocsupplierrelations@aramco.nl www.aramcooverseas.com Aramco Overseas Company B.V. (AOC) The Hague Ofce AOC Contracting Administration Unit Scheveningseweg 62-66, 2517 KX The Hague, The Netherlands Tel:+31 (0) 88 262 2364 Fax: +31 (0) 88 262 3000 Email: AOCcontractorregistration@aramco.nl www. Aramcooverseas.com Aramco Asia Japan, Tokyo Ofce Marunouchi Building 26F 2-4-1 Marunouchi, Chiyoda-ku Tokyo, 100-6326, JAPAN T : +81 (0)3-6367-7801 F : +81 (0)3-3211-3544 Email: AOCT_Registration@aramco.com Website: www.aramcooverseas.com

USA/Aramco Services Company

Service Contractors

North America

Netherlands/Aramco Overseas Company

Contractors Registration

Europe and South Africa

Netherlands/Aramco Overseas Company

Manufacturers & Suppliers Registration

All countries outside of Saudi Arabia & USA/Canada

Japan/ Aramco Asia Japan

Manufacturers & Suppliers Registration

Japan, The Republic of Korea, Taiwan & Hong Kong, Malaysia, Singapore, Indonesia, Thailand, Vietnam, Cambodia, & The Philippines

Country/ Company
India/ Aramco Overseas Company/ AOC India

Function
Manufacturers & Suppliers Registration

Area of Responsibility
India

Address & Phone/Fax Numbers

Aramco Overseas Company B.V. (AOC), India Branch Ofce Unit 610, Level-6, Time Tower Building MG Road, Gurgaon,-122002, Haryana., India Tel: +91 (0) 1244983900, Fax: +91 (0)124 498 3909 Email: AOC-India_registration@aramco.nl Website: www.aramcooverseas.com Aramco Far East (Beijing) Business Services Co., Ltd. (ABS), Shanghai Branch No. 16T60, 16F SWFC 100 Century Avenue, Pudong New District, Shanghai 200120, PRC Tel: +86 (0) 21-3866-5700, Fax: +86 (0) 21-68779080 Email: ABS-SH-Sourcing@aramcoasia.com

China/ Aramco Asia China (Aramco Far East (Beijing) Business Services Co., Ltd. (ABS)

Manufacturers & Suppliers Registration

China

Hague Aramco Overseas Company B.V. London Tokyo United States Houston Aramco Services Company Al-Khafji Jubail Yanbu Jiddah Saudi Aramco Headquarters Dhahran India Beijing Korea

Aramco Asia Company/AAJ

Aramco Asia Company/AAK Shanghai Aramco Asia Company/ABS Aramco Overseas Company B.V.

Philippines

IMPORTANT AND USEFUL LINKS

MEGA COMPANIES Saudi Basic Industries Corporation, www.sabic.com Saudi Electric Company, www.se.com.sa Saline Water Conversion Corporation, www.swcc.gov.sa Water Utility Company for Jubail and Yanbu, www.maraq.com.sa Saudi Arabian Oil Company (Saudi Aramco), www.saudiaramco.com LAND ALLOCATION ENTITIES Royal Commission for Jubail and Yanbu, www.rcjy.gov.sa Saudi Industrial Property Authority (MODON), www.modon.gov.sa Rabigh Conversion Industrial Park, www.rabighCIP.com Dhahran Tecnno-Valley, dtv.kfupm.edu.sa (R&D Purposes) FUNDING ENTITIES Saudi Industrial Development Fund, www.sidf.gov.sa Human Resourced Development Fund (HRDF), www.hrdf.org.sa Public Investment Fund, (via), www.mof.gov.sa GOVERNMENT AND SEMI-GOVERNMENT ENTITIES Saudi Government Electronic Portal, www.saudi.gov.sa Saudi Arabia General Investment Authority, www.sagia.gov.sa Council of Saudi Chambers, www.saudichambers.org.sa Ministry of Petroleum & Mineral Resources, www.mopm.gov.sa Ministry of Finance, www.mof.gov.sa Electricity and Cogeneration Regulatory Authority, www.ecra.gov.sa Department of Zakat and Income Tax, www.dzit.gov.sa Ministry of Commerce and Industry, www.commerce.gov.sa Ministry of Labor, www.mol.gov.sa General Organization for Social Insurance, www.gosi.gov.sa Saudi Standards, Metrology and Quality Org, www.saso.org.sa Saudi Trade & Export Development Company, www.tusdeer.com Dammam Bonded & Re-export Zone, www.reexport.com Saudi Ports Authority, www.ports.gov.sa Saudi Customs, www.customs.gov.sa VOCATIONAL, TECHNICAL AND EDUCATIONAL ENTITIES General Organization for Technical Education and Vocational Training, www.tvtc.gov.sa Jubail Industrial College, www.jic.edu.sa Jubail Technical Institute, www.jti.edu.sa Saudi Petroleum Services Polytechnic, www.spsp.edu.sa College of Technology - Dammam, www.ctd.edu.saf

For question or suggestion regarding the booklet, please refer them to Supplier Relationship Management Division/ Materials Supply. E-mail: Supplier-Realtions@aramco.com , Tel: +966 3 874 0337, Fax +966 3 874 0115 Address: Room A-119, North Park 1, Dhahran 31311, Saudi Arabia