Business & Money | Saturday 13 July, 2019 10:47 am |

King Salman Energy Park (SPARK) and Dubai-based Oilfields Supply Center Ltd. (OSC) today signed an agreement to establish OSC as an anchor tenant at SPARK, an energy city megaproject which will cement Saudi Arabia’s position as a global energy, industrial and technology hub.

In collaboration with Saudi Aramco, OSC will develop a business incubator, called the Common User Supply Base (CUSB) to support the oil and gas industry in the Kingdom and the region, as well as help accelerate the growth of small and medium-sized enterprises (SMEs) in the energy sector. OSC plans to invest around $450 million over the next two years, contributing to SPARK’s objective of localizing more than 300 new industrial and service facilities.

The CUSB will be an industrial facility that provides industrial buildings of various sizes to host companies and supply them with integrated services such as logistics, technical engineering services and business support. The center will be the first of its kind in Saudi Arabia and the largest in the region with a footprint of over 1 million square meters and a potential expansion of an additional 500,000 square meters.

The agreement was signed by Mohammed Y. Qahtani, SPARK Chairman and Saudi Aramco Senior Vice President for Upstream, and Muneeb Abdulrazzaq Al Kazim, General Manager of Oilfields Supply Company Saudi Arabia, in the presence of Amin H. Nasser, Saudi Aramco President and CEO, and Iqbal Mohammad Abedin, CEO of Oilfields Supply Center Ltd.

Commenting on the agreement, Saudi Aramco President & CEO Amin H. Nasser, said: “OSC’s investment marks an important step in SPARK’s journey to become an integrated energy, industrial, technology and services hub. It will contribute to supply chain localization, boost job creation and support the overall advancement of the Kingdom’s energy sector.“

He added: “OSC’s firm commitment is a strong vote of confidence on SPARK’s value proposition in attracting global and regional companies. Their participation will help advance our strategy to enable the growth of a vibrant ecosystem.”

“OSC‘s investment in SPARK and collaboration with Saudi Aramco will position the project as a major enabler for oil and gas manufacturing and service companies and related SMEs,“ said Iqbal Mohammad Abedin, Director and General Manager Corporate Affairs of Oilfields Supply Center Ltd. “It will enhance their localization plans by both increasing local procurement and value added manufacturing activities, as well as increasing the employment of skilled Saudi nationals.“

Saudi Aramco is at the heart of SPARK’s development, helping bring businesses together to drive efficiencies and promote technological development, manufacturing and exports, as well as build a world-class energy supply chain. SPARK’s role in enabling localization within the Kingdom’s energy supply chain aligns with the strategic goals of Saudi Aramco’s In-Kingdom Total Value Add (IKTVA) program.

When operational, SPARK is estimated to contribute more than $6 billion to the Kingdom’s GDP annually and create ho thousands of direct and indirect jobs.