King Salman Energy Park (Spark) has signed up Dubai-based Oilfields Supply Center (OSC) as an anchor tenant at its upcoming energy city venture that will cement the kingdom’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.
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 centre will be the first-of-its-kind in Saudi Arabia and the largest in the region with a footprint of over 1 million sq m and a potential expansion of an additional 500,000 sq m.
Over the next two years, OSC plans to invest around $450 million contributing to Spark’s objective of localising more than 300 new industrial and service facilities.
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 localisation within the Kingdom’s energy supply chain aligns with the strategic goals of Saudi Aramco’s In-Kingdom Total Value Add (IKTVA) programme.
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.
"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," remarked Saudi Aramco President and CEO Amin H. Nasser while speaking at the signing of anchor tenancy agreement in the presence of Oilfields Supply Center CEO Iqbal Mohammad Abedin.
Primarily focused on the oil and gas and energy industries, OSC's main activities include provision of services for internationally recognized oilfields and repair facilities for Mena and South East Asia regions. It has a total employee headcount of 1,300 and an annual turnover of Dh2 billion.
The deal was inked by Spark Chairman and Saudi Aramco Senior VP for Upstream Mohammed Y. Qahtani and OSC Saudi Arabia General Manager Muneeb Abdulrazzaq Al Kazim.
"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," stated Nasser.
Mohammad Abedin said: "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."
"It will enhance their localisation plans by both increasing local procurement and value added manufacturing activities, as well as increasing the employment of skilled Saudi nationals," he added.-TradeArabia News Service