RIYADH: Saudi Energy Minister Khalid Al-Falih said the newly approved industrial energy city project will help localize industries supportive to the energy sector.
He said the decision to establish a new energy city aligns with the Vision 2030 and supports vital infrastructure in the Kingdom.
In a statement issued late on Saturday, Saudi Aramco said that the first phase of the energy city would be completed in 2021.
The city, which will be developed over 50 square kilometers of land allocated for energy-related industries, will complete its first phase that covers almost 12 square kilometers by that date.
The Cabinet approved a proposal put forward by Saudi Aramco for the establishment of a company in the Eastern Province to undertake infrastructure development for the industrial energy city and another company to operate and maintain the city. The new project will generate thousands of direct and indirect jobs and annually add SR22.5 billion ($6 billion) to the Kingdom’s gross domestic product (GDP).
Amin Nasser, chief executive of Saudi Aramco, said the new energy city would be a milestone in efforts to localize industries and services related to energy.
The city will create an ideal and integrated environment to attract global investments; establish and develop a large number of small- and medium- enterprises (SMEs); and stimulate innovation and entrepreneurship, the Aramco chief executive said.
The city will be located between Dammam and Al-Ahsa, at the heart of energy operations. Ghawar, the world’s largest onshore oil field is near Al-Ahsa.
The Saudi Industrial Property Authority (MODON), which develops industrial cities in Saudi Arabia, has started to chalk out plans and programs with Saudi Aramco to develop and operate the city, the statement added.
Khalid Al-Salim, acting director-general of MODON, said the management of the new energy city will be jointly carried out by Saudi Aramco and Modon.
The project will support Saudi Aramco’s operations, will cut costs of products and services, and meet the needs of the oil giant’s operations, the statement said.
It will also provide drilling, exploration, production services and pipe manufacturing.
Saudi Arabia is trying to lower dependence on oil and establish new industries to expedite job creation for a rapidly rising young population.
It plans to list in stock markets up to 5 percent of its shares in Aramco, which will help it invest in other sectors to generate more revenue streams.
— With input from Reuters
1st phase of Aramco’s industrial city to be completed in 2021
1st phase of Aramco’s industrial city to be completed in 2021
Saudi Arabia opens 3rd round of Exploration Empowerment Program
RIYADH: Saudi Arabia’s Ministry of Industry and Mineral Resources, in collaboration with the Ministry of Investment, has opened applications for the third round of the Exploration Empowerment Program, part of ongoing efforts to accelerate mineral exploration in the Kingdom, reduce early-stage investment risks, and attract high-quality investment from local and international mining companies.
The third round of the Exploration Empowerment Program offers a comprehensive support package targeting exploration companies and mineral prospecting license holders.
The initiative aims to lower investment risks for projects and support a faster transition from prospecting to development.
"The program provides coverage of up to 70 percent of the total salaries of Saudi technical staff, such as geologists, during the first two years, increasing to 100 percent thereafter, in line with program requirements.
This support aims to develop talent, build national capabilities in mineral exploration, promote job localization, and facilitate the transfer of geological knowledge.
The application for the third round opened on Jan. 14, allowing participants to benefit from the Kingdom’s attractive investment environment, its stable legal framework, and streamlined regulatory structures, as well as integrated infrastructure that supports the transition from mineral resources to operational mines.
The ministry has set the timeline for the third round, with the application period running from Jan. 14 to March 31.
This will be followed by the evaluation, approval, and signing of agreements from April 1 to May 31, with the eligible projects set to be announced between June 1 and July 31 of the same year.
The program stages include submitting exploration data during the reimbursement and payment phase from Sept. 1 to Nov. 30, followed by technical and financial verification of work programs and approval of the disbursement of support funds in January 2027.
The exploration data will then be published on the National Geological Database in April 2027.
The ministry emphasized that the EEP focuses on supporting the exploration of strategically important minerals with national priority. It also contributes to enhancing geological knowledge by providing up-to-date data that meets international standards, helping investors make informed decisions and supporting the growth of national companies and local supply chains.
The ministry urged companies to apply early to benefit from the program’s third round, which coincided with the fifth edition of the International Mining Conference, which was held from Jan. 13 to 15.
