SA Environmental Stewardship

Table of Contents

Radiation Protection 50

Preface 3

President’s Foreword 5

Introduction 6

Environmental Recognition 9

Environmental Technology 12

Environmental Awareness 17

Environmental Performance Assessments 23

Air Quality 24

Marine Protection 27

Groundwater Protection 34

Solid Waste Management 36

Wastewater Treatment & Reuse 38

Oil Spill Preparedness 40

Carbon Management Efforts 44

Industrial Hygiene Program 46

Environmental Health Program 48

It is with pleasure and gratitude that we

present this booklet to our valued guests.

It contains an overview of various Saudi

Aramco environmental protection programs.

The contents highlight the Company’s

environmental efforts and initiatives over

the past several decades.

These efforts contribute to the protection

of the Kingdom’s environment and precious

natural resources along with promoting

environmental stewardship and awareness.

Saudi Aramco Environmental Stewardship

Saudi Aramco has maintained a high level of environmental responsibility since its earliest days. The Company’s first formal policy statement on environmental protection was issued in 1963.

Over the years, the policy has been revised several times to reflect the latest environmental developments. The policy established a strong mandate from which essential environmental programs can be derived. Today’s environmental programs focus on environmental challenges such as clean fuels and carbon management, air and water quality, waste management, marine studies, environmental health, radiation protection, oil spill preparedness and other operational aspects.

Saudi Aramco’s extensive environmental master plan, accompanied by several environmental assessment and monitoring programs, aim to further enhance environmental management corporate-wide.

Saudi Aramco does not limit its environmental stewardship activities within the perimeters of its facilities. The Company has an extensive history of promoting environmental awareness to employees and their families, the general public, and other local industries, with the aim of enhancing environmental knowledge and maturity towards a more environmentally responsible culture.

Environmental education initiatives, local industry environmental awareness workshops, environmental health partnership with municipalities and mangrove transplantation are some examples of environmental outreach activities supporting the aim of enhancing environmental knowledge and maturity.

The Environmental Protection Department (EPD) represents the corporate authority to administer and facilitate environmental stewardship. EPD is proud to highlight a brief of the activities that support this important corporate culture of responsible environmental stewardship; one pursued diligently for more than seven decades.

Preface


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Continually enhancing environmental performance and protection while meeting dramatically growing world energy demand is a major focus of the global petroleum industry. Protecting the environment is not only a moral duty for energy providers, it’s also a sound economic choice and good business practice.

Saudi Aramco’s commitment to environmental sustainability provides our customer base with secure, reliable and safe energy supplies, and assurance of our dedication to minimizing the environmental footprint of our operations and products.

From our earliest days, Saudi Aramco established a pioneering environmental policy and a fundamental commitment to safeguard public health and the environment. This vision is not limited to managing our facilities in a manner that protects the environment and assures human health and safety; it also involves enhancing quality of life in the communities where Saudi Aramco operates.

Saudi Aramco’s response to the global energy challenge is to fuel economic and social progress while leading innovation to make our petroleum greener and cleaner. Our R&D focus is yielding tremendous advances, including technological breakthroughs to optimize oil and gas discovery and recovery; develop clean fuel technologies; increase energy efficiency; and reduce emissions.

To achieve these ambitious targets, Saudi Aramco is investing in cutting-edge research, technologies and

tools; forging new partnerships; and conducting energy-efficient operations. Our commitment to these solutions lets us meet our dual responsibility to both economic and ecological sustainability.

Saudi Aramco’s core mission is to provide affordable, reliable energy to the world. In other words, our business ultimately is about improving the quality of human life through energy, and using precious natural resources responsibly, preserving them for future generations.

I am pleased to present this booklet as an overview of Saudi Aramco’s historic and ongoing commitment to the twin goals of exemplary environmental stewardship while delivering the energy that fuels economic growth and greater prosperity around the world.

Khalid A. Al-FalihPresident and Chief Executive Officer

President’sForeword


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The Company’s effort is intended to achieve the following corporate objectives:

1• Protecting and promoting the wellbeing of both workers and community residents

2• Encouraging environmental education and advancing environmental awareness Kingdom wide

3• Minimizing the Company’s environmental impact by maximizing its environmental performance

4• Ensuring compliance with the Kingdom’s environmental regulations and standards

5• Protecting the Kingdom’s natural resources

6• Advocating the Company’s point of view in designing international environmental policies and regulations

Historical BackgroundSaudi Aramco’s first formal Company Policy Statement regarding pollution prevention of coastal waters was issued in 1963. The Company’s first environmental entity was created during the same year with five professionals dedicated to both environmental and industrial hygiene related work.

The Saudi Arabian government instituted the “Meteorological and Environmental Protection Administration” chartered with environmental protection in 1982. Today it is known as “The Presidency of Meteorology and Environment” (PME).

Saudi Aramco is the national oil Company of Saudi Arabia. It is entrusted with managing the Kingdom’s natural hydrocarbon (oil and gas) assets. The Company’s environmental efforts include protecting the Kingdom’s environment and responsibly managing the oil and gas resources.

Introduction


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Introduction

In July 1991, the President and Chief Executive Officer of Saudi Aramco, Ali Al-Naimi, signed a Company-wide environmental protection policy. This policy was re-issued in 1999. The re-issued policy was more comprehensive and addressed emerging environmental challenges.

Saudi Aramco Policy Statement regarding pollution prevention of coastal waters was issued in 1963

Saudi Aramco’s policy reaffirms that the Company’s operations do not create undue risks to the environment or public health. This policy specifies the Company’s measures to protect the land, air, and water from harmful pollution.

Saudi Aramco Environmental Protection Policy was re-issued in 1999

The environmental unit of five professionals, established nearly five decades ago, has grown as the Company expanded its operations. During the same period, environmental regulations evolved and public environmental awareness has improved, while environmental issues have become more complex.

In 1998, Saudi Aramco created the Environmental Protection Department (EPD), which covers a wide range of environmental disciplines, with over (130) specialized professionals. EPD is responsible for providing comprehensive environmental leadership throughout the Company starting with Company facilities which are built according to corporate environmental standards. EPD acts as the focal point of contact for environmental matters with all outside organizations which include governmental agencies, national and international industry, professional institutions, and national and international technical and regulatory organizations.


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Saudi Aramco, a world leader in environmental protection, continues to improve its environmental management approach using the latest technologies and best industry practices. One example is the annual “President’s Environmental Stewardship Award” given to Company organizations for environmental achievement. The award is based on environmental performance, compliance, environmental awareness activities and new initiatives adopted by each organization.

Introduction


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Environmental engineering standards, procedures and general instructions were developed for use during the operation and maintenance of Company facilities. Specific monitoring and inspection programs were also developed to ensure that environmental requirements are observed Company wide. These included the Environmental Performance Assessment (EPA) program, where each facility periodically undergoes a comprehensive environmental assessment.

In 2001, the Company introduced an extensive Environmental Master Plan, which identified large capital projects that will bring additional environmental enhancements to Saudi Aramco’s air emissions controls, wastewater discharges, and waste management. In addition, as the sole supplier of fuels to the Kingdom, the plan includes projects to produce cleaner gasoline and diesel fuels to reduce urban pollution. The Environmental Master Plan is a dynamic process which automatically allows capital projects to be added, wherever the need arises, to meet environmental requirements.

EnvironmentalRecognition

Saudi Aramco, the national oil Company of Saudi Arabia, is entrusted with managing the Kingdom’s natural hydrocarbon (oil and gas) assets. The Company’s environmental efforts include protecting the Kingdom’s environment and responsibly managing the oil and gas resources.


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National Oil Companies Award - 2006In 2006, during the Fourth NOC Forum held in Dhahran, Saudi Aramco received the National Oil Company (NOC) First Environmental Stewardship award.

The award was for the Laser-Based Oil Fingerprinting of Crude Oils project. Saudi Aramco and King Fahd University of Petroleum and Minerals patented this laser-based system for oil spill finger printing. It is a cost-effective, nondestructive technique to positively identify oil spills in few minutes.

This achievement is a reflection of Saudi Aramco’s focus on technology and environmental protection. It confirms the benefits of cooperation with leading universities and research institutions.

Mr. Salim Al-Aydh, Sr. VP, Engineering & Project Management receiving the “Best Company in Environment” Award during the 2005 Pipeline Magazine’s Excellence in Energy Award ceremony

Best Company in Environment AwardIn 2005, Saudi Aramco was the winner of the “Best Company in Environment” award during the Pipeline Magazine’s Excellence in Energy award.

The award recognizes the Company’s outstanding achievements and contributions toward protecting the region’s environment.

Gulf Cooperation Council (GCC) RecognitionIn 2003, Saudi Aramco’s efforts in the area of environmental protection were recognized by the GCC General Secretariat. The Company was honored with the Gulf Cooperation Council Award for its “outstanding performance in the Environmental Awareness field.”

The American Academy of Environmental Engineers AwardIn 1999, the Company received an award of Excellence in Environmental Engineering from The American Academy of Environmental Engineers (AAEE) for its “Master Plan for Industrial Waste Management.”, in addition to being recognized by the AEEE for its Waste Minimization Program for “Significant and Sustained Contributions for the Excellence in Environmental Engineering.”



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Mr. Hesham Al-Musaiid, EPD Manager receiving the NOC Environmental Award from Mr. Wang Tianpu, President of Sinopec

National Oil Companies Award - 2008In 2008, Saudi Aramco was awarded the second National Oil Companies (NOC) Environmental Stewardship Award for its groundbreaking research on Electron Beam Flue Gas Treatment (EBFGT) technology. For the first time, EBFGT has been successfully demonstrated on removing air pollutants from liquid fuel fired boiler flue gas.

Environmental Stewardship Excellence Award In 2010, Saudi Aramco was the winner of the “Environmental Stewardship Excellence Award” hosted by the Middle East Excellence Awards Institute.

The award recognizes the Company’s environmental stewardship and its efforts to encourage environmental sustainability within the community.

Mr. Khalid Abuleif, EPD representative receiving the Environmental Stewardship Excellence Award from H.E. Saeed Al Tayer, Managing Director and CEO, Dubai Electricity and Water Authority (DEWA)



National Commission for Wildlife Conservation and DevelopmentIn 1995, the National Commission for Wildlife Conservation (currently The Saudi Commission for Wildlife Conservation) recognized Saudi Aramco’s environmental stewardship efforts to minimize the potential environmental impacts on the Al-Hawtah Ibex Reserve.

New York Film Festival Silver World MedalIn 1999, “The Land of Khuzama,” a fully animated children’s educational film received the Silver World Medal at the prestigious New York Film Festival competition. The 26-minute film, produced in English and Arabic, highlighted environmental issues important to Saudi Arabia. Arab LeagueIn 1998, the Arab League awarded the Company an Integrated Environmental Management and Development of Coastal Areas appreciation certificate for the development of “Biotope Maps of the Western Arabian Gulf.” These biotope maps were a product of partnership between Saudi Aramco and King Fahad University of Petroleum & Minerals’ Research Institute.

This project was initiated in 1984 and has provided a wealth of information regarding the Arabian Gulf’s marine ecology.

The National Commission for Wildlife Conservation (currently The Saudi Commission for Wildlife Conservation) recognized Saudi Aramco’s environmental stewardship efforts

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Advanced technology development provides a cost effective path to achieve environmental protection goals. In 2001, the Environmental Control and Remediation Technology (EC&RT) Focus Team was established. EC&RT goals help the development of environmental control technologies and incorporate newly developed ones.

The objective of the EC&RT team is to ensure that Saudi Aramco is a regional leader in the use, adaptation and development of new and innovative approaches to environmental management. This team includes professionals from various environmental disciplines and operating facilities to facilitate and promote environmental technology usage within the Company.

The EC&RT team focuses on six key environmental areas that are critical to the Company’s long-term environmental performance, which advocates development and usage of technological solutions in the areas of:

1• Air Quality

2• Industrial Wastewater

3• Marine Environment

4• Solid and Hazardous Wastes

5• Radiation Protection

6• Site Remediation

These key target areas expand into more specific technology development priorities which include:

• Reducing Sulfur Dioxide and Nitrous Dioxide emissions

• Treating and disposing of oily wastes in a cost-effective manner

• Reducing the costs from industrial wastewater discharge regulations

• Protecting and restoring groundwater resources

• Handling and disposing of Naturally OccurringRadioactive Materials (NORM)

• Detecting oil spills

• Real-time monitoring of the marine environment

• Treating and disposing off-shore drilling wastes and produced water

• Abandoning off-shore structures and pipelines

EnvironmentalTechnology


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Furthermore, the Company continues to evaluate technology initiatives related to each target area.

Some examples of technology initiatives in the various environmental areas are:

Waste ManagementBioreactor Treatment of Oily WasteThis technology was evaluated as a potential alternative to land farming. Several oily waste streams were treated in a pilot-scale bioreactor. The results indicated that bioreactor treatment was more effective and faster than land farming. This treatment approach can also reduce risks to workers’ health and avoid contamination of land with oily wastes.

To promote the local economy, the Environmental Protection Department (EPD) developed and facilitated an arrangement allowing conveyance of technical know-how from the technology provider to a local vendor.

Marine ProtectionLaser-based Oil FingerprintingThis initiative is the outcome of a partnership between Environmental Protection Department, Research and Development Center and King Fahd University of Petroleum and Minerals (KFUPM) Research Institute. The initiative targeted the development of techniques using laser-induced fluorescence to identify the source of unknown oil spills rapidly and economically.

A propriety laser-based system was successfully developed to fingerprint and identify various types of crude in few minutes as compared to laboratory analysis which can take several days.

Saudi Aramco received the National Oil Companies’ (NOC) Environmental Stewardship Award for this project during the Fourth NOC Forum held in 2006.

After TreatmentBefore Treatment

Laser-Based Oil Fingerprinting


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Groundwater Protection Passive Soil Gas Survey for Site CharacterizationThis technology improves ground water protection by monitoring the levels and the spread of hydrocarbon (oil) contamination in soil.

The technique is simple yet very effective because it is used to complement groundwater monitoring wells by providing more information about the sources and spread of hydrocarbon contamination. This technology has been successfully implemented in several Saudi Aramco facilities.

Granular Activated Carbon Membrane Biological Reactor (GAC MBR)This technology, which was developed by EPD in collaboration with Siemens Water Technologies, is utilized as a water treatment system where traditional treatment systems could not meet the national standards discharge requirements or where the reuse of oily wastewater is needed. The (GAC MBR) system has been effective in treating very-difficult-to-treat compounds present in some downstream wastewater.

The GAC MBR technology allows more than 40% increase in the life expectancy of the expensive membranes used in MBRs; it requires only a small fraction of the replacement carbon; it generates 10% - 20% less sludge; it requires less energy to operate and it will allow the wastewater to be reused in almost any process used in a facility. This “Green Technology” will allow Saudi Aramco to reduce its need for limited groundwater resources and reduce the costs associated with treating its wastewater.

Air Emissions Monitoring and ReductionAlkaline Flue Gas DesulfurizationThis initiative evaluated four alkaline flue gas desulfurization (FGD) technologies for Company facilities.

To maximize the knowledge gained through this technology initiative, the results of this study were shared with the Saudi Electricity Company.

Furthermore, since the primary source of this type of emission, in the Kingdom, is from power generation and desalination plants, this technology has the potential of positive impact, on the national level, by reducing Sulfur Dioxide emissions.

Carbon Enhanced MBR Pilot Unit



Flowchart illustrates a FGD processes system equipped with a traditional spray tower (Source: Carmeuse Group web site)

Electron-Beam Flue Gas Treatment (EBFGT) TechnologyA relatively new technology which employs energetic electron beams to treat flue gas. In comparison to conventional FGD technologies, which remove only Sulfur Dioxide while producing large amounts of waste, EBFGT simultaneously reduces Sulfur Dioxide and Nitrous Oxide emissions, and converts air pollutants into agricultural fertilizer components.

Saudi Aramco successfully applied this technology to several petroleum fuels at bench scale to yield high quality fertilizer components, in collaboration with King Abdulaziz City for Science & Technology (KACST) and a specialized European research institution (Institute of Nuclear Chemistry & Technology).

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Electron-Beam Flue Gas Treatment Process

Elimination of Hardware Continuous Emission Monitoring with Software (PEM)

Predictive Emission Monitoring (PEM)This technology initiative investigated the use of software-based PEM to provide continuous monitoring of stack emissions. This would be an alternative to the hardware-based conventional systems which have higher costs.

Saudi Aramco and the PEM technology developer collaborated to improve this technology and ensure that it can operate effectively within Saudi Arabia’s weather conditions. These efforts allowed adopting this technology by both, Saudi Aramco and local industries.

RemediationRemediation of Hydrocarbon Contaminated Soils using Low Temperature Oxidation (LTO) TechnologyThe conventional method used in treating soils contaminated with heavy oil is Thermal Desorption. The contaminated soil is excavated and removed to a high temperature kiln (800 ˚C). This method is expensive and very energy intensive.

The LTO technology initiative evaluated the use of Low Temperature Oxidation to treat soils contaminated with heavy oils in place without excavation. This technology is applied to oil-contaminated soil where the oil cannot be recovered by centrifugation.

The LTO technology was evaluated as a potentially lower energy alternative for onsite solidification of contaminated soil. This can then be capped and the land used for general purposes. The technology was successfully demonstrated on a bench scale.

Mechanical properties and toxicity of the resulting treated soil matrix were assessed. One important outcome of this study was the environmental acceptability. Reduction in soil toxicity was verified using earth worms that successfully survived in the treated soil.

Low Temperature Oxidation Treated Waste Materials

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Growth of four selected plants (Sunflowers, Mustard white, Mustard Black and Fescue) in soil contamination

Phyto-remediation Technology for Contaminated SoilThis study evaluated the practicality of Phyto-remediation for removal of heavy metals from soil in arid conditions using plants that grow well in the local climate. The study evaluated the effectiveness of sunflower, white mustard, black mustard and fescue in the removal of lead, nickel and vanadium from soil.



The study demonstrated that some local plants are capable of removing heavy metals, in addition to establishing a local knowledge base to utilize this technology.

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I. Employee Environmental AwarenessThe objective of the Employee Awareness program is to raise environmental knowledge in a manner that will help the employees integrate environmental considerations into their jobs taking into account various environmental competencies including waste management, air quality, occupational health, environmental health, water quality, groundwater and marine protection. Activities supporting employee environmental awareness include publishing and distributing environmental literature such as the EnviroNews Magazine, booklets, posters and environmental pamphlets addressing various environmental aspects of Company operations.

EnvironmentalAwareness

Saudi Aramco has a long-established strategy that promotes environmental awareness among employees and their families, general public, and local industries. The environmental awareness activities associated with this strategy are designed to enhance the environmental knowledge of employees, the community, and local industry to cultivate an environmentally responsible culture.


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A collection of Environmental Awareness Tools

1) Management Environmental AwarenessPresenting emerging environmental issues to upper management in effort to promote proactive environmental leadership within Saudi Aramco has been a corporate prime objective. In 2002, the Management Environmental Leadership (MEL) workshop was introduced as phase I of this initiative. During the workshop, upper management were introduced to emerging environmental issues dealing with air emissions, solid and hazardous waste, groundwater, wastewater, occupational health, environmental health, radiation protection, and marine protection.

2) President’s Environmental Stewardship Award

The President’s Environmental Stewardship Award serves two purposes; one is to recognize facilities’ environmental excellence, and the second is to promote awareness among employees. The Award is an annual event that focuses on:

• Promoting stewardship in various environmentalfields

• Recognizing organizations with outstandingperformance in environmental protection

• Providing an incentive for organizations toenhance their environmental performance

• Enhancing Company’s overall environmental performance

• Establishing top performing organizations as environmental role models.



The workshop has been designed to:• Enhance environmental awareness among

Company management• Prepare the participants to proactively recognize

potential environmental problems and risks• Engage the participants to enhance facility

environmental performance

Phase-II of the initiative, launched in 2005, is comprised of the Environmental Stewardship Workshop (ESW) series, and targets middle management. Topics presented and discussed during (ESWs) are similar to those covered in the MEL workshops with focus on specific environmental subject matters.

Saudi Aramco employees in one of Environmental Stewardship Workshop

Mr. Khalid Al-Falih, President and CEO of Saudi Aramco announcing the 2009 winners for Environmental Stewardship Award

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3) Operating Facilities Environmental Coordinators Technical Exchange Meetings

Environmental Coordinators (ECs) are the liaison officers between EPD and the respective operating departments or service organizations Company-wide. They are responsible for assisting their departments to comply with Company’s environmental requirements, and enhancing facility environmental performance.

ECs meetings are held bi-annually to provide a forum for direct interaction and information exchange between EPD professional staff and the ECs as well as to train, update, and enhance the knowledge of the participants. Topics addressed include the roles and responsibilities of the ECs in relation to the Corporate Environmental Scorecard (CES), the Environmental Health & Safety system (EH&S), waste management, wastewater management, environmental health and industrial hygiene. At these meetings, ECs also exchange experiences and share ideas for improving environmental performance of their facilities.

Saudi Aramco Environmental Coordinators during one of EC annual meeting

4) Operating Facilities Environmental Campaigns

The main objective of environmental campaigns is to enhance employees’ awareness and promote an environmentally responsible culture, Company-wide, in line with corporate values of stewardship and citizenship. An enhanced Company environmental performance is also an expected outcome. These campaigns are organized and implemented Company-wide on an annual basis in cooperation with various Company organizations.

5) Other Environmental Awareness Support Activities:

• Developing engineering e-courses pertaining to environmental disciplines such as: Introduction to Environmental Protection, Air Pollution, Water Pollution and Waste Disposal, and Wastewater 1 & 2.

• Developing environmental awareness presenta-tions for specific operations’ requirement.

• Developing 3D animation videos addressing air quality, ground/wastewater, and marine protection.

• Maintaining a library of environmental videos for operating organizations’ communication meetings.

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Environmental Education Program aims to develop community commitment through school based programs to instill environmental stewardship

Local students participating in one of the Saudi Aramco Environmental Education Program events.

II. Community Environmental AwarenessThe primary aim of the community environmental awareness program is to raise environmental awareness in the wider community including local schools, employees’ families, general public, and the local industry through various activities such as workshops, exhibits and campaigns. Partnering with local municipalities in the field of environmental health also forms another dimension of the community environmental awareness. Another goal is to raise community awareness in minimizing and managing waste through reduction, reuse, and recycling activities.

1) Environmental Education Program A major activity supporting the overall aim of the community environmental awareness initiative targets the establishment of environmental awareness programs at Eastern Province schools under the umbrella of the “Environmental Education Program.”

Saudi Aramco is partnering with the Ministry of Education Eastern Province Directorate for implementing the program. The implementation of the pilot phase was initiated in December 2007.

The long term goal of the Environmental Education Program is to develop community commitment through a school based program to sustain environmental protection. This program helps young children understand how their individual actions can affect the environment and learn to take personal responsibility for the preservation and restoration of our environment. Enhancing environmental knowledge and awareness of young generations is a reflection of the Company’s social responsibility and corporate value of “citizenship”. This enhancement is achieved through a series of environmental “train-the-trainer” workshops for school teachers. Teachers, then, disseminate the knowledge gained at these workshops throughout their respective schools, using the materials provided by Saudi Aramco and other relevant activities. Tools such as conducting surveys and campaigns at selected schools will be utilized to measure the effectiveness of the program in enhancing the overall environmental awareness of students.



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2) Environmental Community Campaigns Numerous environmental campaigns are frequently organized in cooperation with various Company organizations to contribute to the overall aim of the community environmental awareness initiative. World Environment Day and recycling campaigns are two of the major events regularly conducted. Various media promoting Company activities related to the protection of the environment and public health are utilized to enhance environmental awareness of employees’ dependents and the general public.

3) Mangrove Transplantation Campaigns The mangrove transplantation campaigns initiated in 1991 are annual events undertaken to highlight the importance of mangrove habitats and the role they play in the marine environment, and to re-introduce mangroves at certain Arabian Gulf coastal areas. Mangrove habitats are among

the most productive ecosystems in the marine environment, provide protection for shorelines, and are important nursing grounds for many commercial fishes, shrimp, and other marine organisms. The initiative is undertaken in support of an established National Mangrove Committee focusing on preserving and restoring mangroves in impacted areas along the Kingdom’s coast. The Company has established strong ties and works in partnership with the Saudi Commission for Wildlife Conservation, and the Center of Fisheries Research (Ministry of Agriculture) for the success of this activity. Other campaign participants include volunteers from local schools, boy scouts and the general public. Several thousand mangrove seedlings are planted during each campaign. Saudi Aramco is an active member in the National Mangrove Committee.

Mr. Khalid Al-Falih, President and CEO of Saudi Aramco helping students plant mangroves during transplantation campaign

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Participants during local industry environmental awareness campaign

4) Environmental Health Partnership with MunicipalitiesThe Environmental health partnership with local municipalities represents an outreach program, which was established with local municipalities and educational organizations. The program implementation was accomplished through a series of workshops, training courses and internship opportunities. The program inaugural workshop entitled “Working Together to Ensure Food Safety” and the associated training sessions were successfully conducted in February 2008 in partnership with the Dammam Municipality.

Specific objectives of this initiative are to provide a forum for Saudi Aramco and local municipalities to share knowledge and experience gained in the field of food safety, improve sanitary practices in locally operated food businesses, and raise awareness on the cause and effects of food borne-illnesses.

5) Local Industry Environmental AwarenessThe objective of the Local Industry Awareness is to share Saudi Aramco experiences with the local industry to promote best environmental practices in the areas of waste management, air quality, occupational health, environmental health, and wastewater management. This initiative is also expected to enhance Company-Local Industry relationship and collaboration, and to aid in the transfer of Saudi Aramco know-how to local industry. Forging strong ties with the Company’s potential suppliers is another expected outcome. Since the inception of the initiative in 2005, the Company has sponsored several environmental exchange meetings, workshops and conferences in the Western, Central, and Eastern Regions in cooperation with the Ministry of Industry, Chambers of Commerce & Industry, and local industries. Partnering with these stakeholders is in line with Saudi Aramco’s corporate values of citizenship and environmental stewardship and encourages environmental leadership towards improved industry environmental performance.

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The EPA program is an effective management tool for assessing facility compliance with environmental standards and improving environmental performance. Its continued success is attributed to Saudi Aramco management’s aspiration to uphold regional leadership in environmental protection. EPA survey teams focus mainly on the air quality, wastewater discharges, management of solid and hazardous waste, ground water quality and spill prevention control.

The EPA Program objectives include:1• Conducting periodic Environmental Performance

Assessments (EPAs) to ensure facilities’ compliance with government and Company environmental standards

2• Reporting environmental performance evaluations of facilities to corporate management

3• Ensuring that environmental Non-Conformances are appropriately resolved

EnvironmentalPerformance Assessments

In 1989, the Environmental Performance Assessment (EPA) Program was developed in support of Saudi Aramco’s Environmental Protection Policy.

The EPA Program consists of four basic elements:• Pre-survey familiarization and acquisition of relevant

documents

• Facility site surveys to determine environmental performance

• Follow-up to resolve problems

• Tracking recommendations to ensure implementation and compliance

The continued success of the Environmental Performance Assessment (EPA) Program is attributed to Saudi Aramco management’s aspiration to uphold regional leadership in environmental protection.


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Air Quality

Saudi Aramco has long recognized the importance of air quality. It was the first to introduce ambient air quality monitoring in the region. Manual monitoring of air quality was introduced in the early 1970’s, which was upgraded to automated monitoring in the early 1980’s.

Saudi Aramco operates an Air Quality and Meteorology Monitoring Network also known as AMMNET. The AMMNET program uses the best technologies available to continuously monitor the air quality near major Company facilities. The AMMNET program began with 3 stations. Today, the total number of AMMNET stations has grown to 24; in addition to 4 metrological stations. Optical Remote Sensing (ORS) monitoring systems are used to ensure compliance with air quality standards since 1990’s.

Several air pollutants are monitored at the AMMNET stations, including:

1• Sulfur Dioxide (SO2)

2• Nitrogen Dioxide (NO2)

3• Ozone (O3)

4• Hydrogen Sulfide (H2S)

5• Carbon Monoxide (CO)

Improving air quality is essential to maintain good health and wellbeing. The typical adult breathes approximately 20,000 liters of air every day. Air pollutants are known to cause haze, smog, and reduced visibility. Therefore, it is critical to reduce the level of air pollutants.

Saudi Aramco has introduced low-NOx systems for its boilers, process heaters, and gas turbines, which reduce NOx emissions by more than 50% compared to conventional systems.

Conventional Station Optical Remote Sensing


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Air Quality

Meteorological parameters that are measured include temperature, dew point, wind, solar radiation, atmospheric pressure and rainfall. These parameters are continuously monitored. They are very important in developing design standards for Company facilities.

Data from the AMMNET stations are collected and relayed to the Air Quality Database in real-time. Weather data from major Saudi Aramco facilities is displayed via the http://WeatherNow.aramco.com.sa web site.

Sophisticated modeling techniques use data from the air quality and meteorological monitoring networks to estimate ground level concentrations of pollutants. These advanced tools enable the Company to adequately determine the required air emissions controls at producing facilities to meet environmental standards.

Air Dispersion Modeling complements the air quality monitoring program. Saudi Aramco uses air dispersion modeling as one method of assessing possible air pollution from existing and planned Company facilities.

Advanced technologies such as Predictive Emissions Monitoring (PEM) and Infrared Cameras are used to detect, measure, and control the level of air pollutants that are emitted into the atmosphere. PEM applies a computer model to predict stack emissions. Infrared Cameras use advanced imaging technology to detect and measure gas leaks. The Company can thus control leaks and prevent them from becoming a health or environmental concern.

Saudi Aramco has completed several major projects to reduce air pollution that may result from its facilities and produced fuels. In 2001, lead-free gasoline was introduced in Saudi Arabia. In 2006, Saudi Aramco introduced low sulfur diesel in the Kingdom. The commissioning of the low sulfur diesel will significantly reduce sulfur dioxide emissions. This will also enhance air quality throughout the Kingdom.

Mr. Abdullah Jum’ah, past President and CEO of Saudi Aramco introducing Unleaded Gasoline

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Saudi Aramco developed a Fuel Quality Road Map to ensure long term adequacy of fuel quality. This map establishes a timetable for capital projects required to introduce high quality fuels to the domestic market. This is to ensure that automobile emissions will meet or exceed ambient air quality standards throughout the kingdom’s urban areas. The Fuel Quality Roadmap will also introduce better low sulfur gasoline which will reduce Sulfur Dioxide (SO2) emissions.

Additionally, the Fuel Quality Road Map considers changes in population, urbanization, engine emission control technologies as well as the composition and size of the kingdom’s automobile fleet.

Sulfur Recovery Units (SRUs)

Distillate Hydrotreaters (DHT) significantly reduce sulfur emissions from diesel fueled vehicles by up to 95%. Distillate Hydrotreaters at Riyadh Refinery and Yanbu Refinery are fully operational. The completion of the Ras Tanura Refinery DHT in 2011 will reduce sulfur emissions still further.

Furthermore, the construction of Saudi Aramco Master Gas System in the 1970’s has substantially benefited the Kingdom. This system has substantially reduced the need to flare the associated gas.

Currently Saudi Aramco gas plants process more than 9 billion cubic feet of natural gas which fuels kingdom’s electric power sector and industry. This is also a critical feedstock for the Kingdom’s booming petrochemical industry.

Saudi Aramco continues to implement Flare Gas Recovery Systems (FGRS) to minimize flaring by recovering as much waste gas as possible. Examples of the FGRS are two projects, one in the Shedgum Gas Plant, and the other in the ‘Uthmaniyah Gas Plant, which are under implementation. Studies are also underway to implement FGRS in other facilities.

Finally, Saudi Aramco has installed Sulfur Recovery Units (SRU). These SRUs significantly reduce Sulfur Dioxide (SO2) emissions from gas plants and refineries up to by 95%, which in turn results in daily recovery of more than 10,000 tons of sulfur. The recovered sulfur is sold as feedstock for various industrial processes. Currently efforts are underway to increase the recovery further, to more than 98%.


Air Quality

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Saudi Aramco has long recognized that the Arabian Gulf is not just about oil exploration, production, and transport. Consequently, the Company has been conducting environmental marine research close to half a century. Recognizing the potential damaging impacts of the oil on the marine environment was one of the main reasons for establishing the Environmental Unit back in the 1960s.

The first ecological surveys were carried out in the early 1970s. This resulted in the landmark publication by Saudi Aramco of the “Biotope of the Western Arabian Gulf.” This continues to be a valuable reference for researchers and amateurs alike to this day. Saudi Aramco’s involvement in marine biological, physical, and ecological research has increased over the years.

Marine Protection

The Arabian Gulf and the Red Sea are vital economic resources for Saudi Arabia and the world, and therefore, Saudi Aramco’s has a prime interest in protecting the marine environment of the Arabian Gulf and the Red Sea. As much as 20 percent or more of the oil produced daily by Saudi Arabia is locked in reservoirs under the sea in the Arabian Gulf. Crude and refined products have been shipped through the Gulf and the Red Sea for over 70 years.


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Saudi Aramco’s involvement in marine biological, physical, and ecological research has increased over the years. In 1984, the Sustaining Research Project, Marine Environmental Studies Program, was launched in partnership with the Research Institute at King Fahd University of Petroleum and Minerals’ (KFUPM) and with Saudi Aramco’s support, numerous marine research and environmental assessment studies in the Arabian Gulf and the Red Sea have been produced.

In the early days, biological and oceanographic data was collected from the Arabian Gulf. To better understand the Gulf as a highly productive biological resource, Saudi Aramco studied and monitored marine habitats such as sea grasses, mangroves, and coral reefs; and conducted physical studies on circulation and tidal dynamics of coastal and offshore areas, including the development of numerical models on hydrodynamics, sediment transport, and pollutant fate and transport. Most of these investigations have been ongoing for over twenty years.

Up until 2003, and for 25 years, Saudi Aramco operated a marine laboratory in Dhahran. During that period, in 1984, recognizing the need for expanded marine research in its areas of operations, Saudi Aramco partnered with King Fahd University of Petroleum and Minerals’ Research Institute (KFUPM) to launch the Sustaining Research Project – Marine Environmental Studies program, which is composed of several phases. Also, in 1984, KFUPM carried out the first of many environmental studies on the impact of Saudi Aramco’s Crude Oil Terminal in the Red Sea Industrial City of Yanbu.

The Arabian Gulf and the Red Sea are vital economic resources for Saudi Arabia and the world

This Partnership had its 25th anniversary at the end of 2008. For most of that quarter century, Saudi Aramco and KFUPM marine scientists were generating the only research in the Saudi territorial waters of the Arabian Gulf. With Saudi Aramco’s support, numerous marine research and environmental assessment studies in the Arabian Gulf and the Red Sea have been produced.

Marine Protection

“Phase 5” of the Sustaining Research Project relating to marine protection and environmental studies includes several assessments and investigations such as: ambient water quality and ecology near major point sources along the Saudi coast of the Arabian gulf; man-made marine structures as beneficial habitats through biomass increase; sea currents and waves in the near shore zone of major Saudi Aramco facilities; impacts of biological entrainment into major Saudi seawater intakes in the gulf; ecological study and habitat mapping of the gulf of Salwah, and primary productivity and harmful algal blooms in the Arabian gulf.


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Marine Protection


Some of the Sustaining Research Project completed studies, which have added to the local knowledge base, include:• Oceanographic investigations;• Arabian Gulf and Red Sea Biotopes investigation

and habitat mapping; • Development of the Arabian Gulf and Red Sea

hydrodynamic and oil spill pollutant fate and transport models;

• Impact of dredging spoils disposal activities;• Mangrove investigations and transplantation

studies;• Coral reef investigations and monitoring

programs;• Offshore platform and outfall investigations;• Offshore produced water discharge to Arabian

Gulf;• Impacts of offshore drill cuttings disposal;• Primary productivity – algae and seagrass;• Ambient water quality / eutrophication in the

Gulf;• Ballast water non-indigenous species

investigation;

The Company continuously works on refining the assessment of the inter-relationship between industrial development and the marine environment, and the focus is on using best practices to reduce the impact of marine operations on the environment. These operations include offshore construction, drilling activities, and drilling waste disposal. Saudi Aramco has benefited greatly from the basic research to investigate and assess the role and impact of the Company’s operations in marine environments. As a result, the Company has developed its own environmental standards which complement both government and regional regulations. Further, the Company vigorously implements benchmarking reviews and environmental best practices in its operations.

Saudi Aramco planted tens of thousands of mangrove trees along Saudi Arabia shorelines in the Arabian Gulf

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Saudi Aramco was among the first organizations to require marine environmental impact assessments for all its projects. Environmental monitoring programs are becoming a basic feature of large-scale marine projects in the Company.

The Company has several initiatives to protect and conserve the Kingdom’s sustainable marine resources. The Mangrove Transplantation Program started out as a feasibility study conducted with KFUPM in the early 1990s. This program has become a multi-agency collaboration. It has resulted in organizing many transplantation campaigns. Tens of thousands of mangrove seedlings were transplanted into in the Gulf mudflats.

Between 1997 and 1998, the Company started on a project to combine remote sensing technology with ground observation to map coastal marine habitats. During that project, a large scale natural coral bleaching event was documented in the Red Sea. The impact of this “1998 Coral Bleaching” event on coral reefs can still be seen to this day.

The expanding presence and operations in the Red Sea drives the need for more marine research. In the last ten years, Saudi Aramco conducted several environmental impact studies and shoreline surveys in the Red Sea. As a result, the Environmental Protection Department (EPD) has helped establish a marine science program and the Marine and Ocean Research Center at King Abdullah University of Science and Technology (KAUST).

Mega Projects and the Marine EnvironmentProtecting the marine environment by minimizing or preventing, if possible, project impacts on the marine environment is a primary target of all Saudi Aramco projects.

This goal is achieved by implementing a number of functional strategies. One strategy is early involvement of marine specialists in project development. This is essential to prevent or minimize potential impact to the marine environment.

Developing an Environmental Screening and Scoping (ESS) Statement in the early stages allows marine scientists to provide technical and scientific guidance. This information helps in the design and the development of the Environmental Impact Assessments (EIAs).

Company standards require the implementation of Environmental Monitoring Programs during and after the construction of the project. Set-back between any coastal development and the shoreline is required to protect the integrity of the coastal zone. These measures are to protect the Kingdom’s marine biological resources. The measures also promote environmental stewardship of the Arabian Gulf and the Red Sea ecosystems.

Marine Protection


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Marine Protection


Using Advanced Technologies to Eliminate Dredging Impacts:Horizontal Directional Drilling (HDD) technology was successfully implemented for the first time in the Company for the near shore approach of the 24” and 30” trunk lines of Abu Ali Flanks upgrade. Several pipelines were installed using HDD technology for shoreline approach of up to 3 km long.

This technology completely eliminates the severe environmental impacts associated with dredging for pipe laying operations. The successful benchmarking of HDD not only minimized the footprint of offshore projects on marine environment but was also more cost effective.

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Product pipe pulling

Principle scheme of pipeline shore approach construction by HDD technology

Marine Protection


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Permanent Mooring Systems at the Offshore Coral Reef IslandsCoral reefs are natural treasures, valuable biological resources, and centers of biodiversity. Reefs can be immense yet extremely sensitive. Saudi Aramco believes coral reefs deserve the highest level of protection.

Coral reefs at Jurayd, Jana, and Karan offshore islands have been significantly degraded by anchors of fishing and recreational ships. These coral reef islands are important nesting sites for birds and endangered species of marine turtles.

Eliminating the need to anchor on coral will rehabilitate the threatened coral reefs in these offshore islands. To accomplish that, the Environmental Protection Department (EPD) installed and maintained permanent mooring buoys around the offshore islands. Special anchors were inserted and cemented into the seafloor. This eliminated the destructive practice of anchoring in coral reefs.

Island Biodiversity in the Western Arabian Gulf

Relocation Saves a Unique Near-shore Coral CommunityIn 2009, and in the first operation of its kind in Saudi Arabia, Saudi Aramco undertook a coral relocation project in Safaniya, the world’s largest offshore oil field, to save a unique coral assemblage that was in the path of a trench to be dredged for a pipeline. Without relocating the corals, the reefs would have been destroyed during the dredging operation. Recognizing that offset measures will not provide useful compensation for the total loss of this coral assemblage; Saudi Aramco decided the corals would have to be moved to a safe area.

Marine Protection


An intensive three-week campaign followed, during which, more than 500 small and large colonies of corals were moved to a nursery area about 700 meters from their original location. Relocated with the corals were many small fishes and invertebrates. The corals survived the relocation and dredging activities. This unique near-shore coral assemblage in Safaniya would not be alive today were it not for the relocation initiative by Saudi Aramco.

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Groundwater is a precious resource for life, and since inception, the Company has been strategically mindful in preserving groundwater resources for future generations.

In the mid-1930’s, the geologists and explorers first surveyed the Eastern Province, and the Company realized the importance of, effectively and economically, developing all water resources. In fact, the first well drilled was not for producing oil, but for water. Without water the first discoverers could not have survived, let alone developed the oil fields we have today. The Company continues to apply new technologies for protection and conservation of water resources in its areas of operations in the Kingdom to ensure that groundwater resources will be available for future generations.

In the early 1980s the Company began checking groundwater conditions beneath its facilities. This was to test water quality and apply corrective actions in the event any groundwater impacts were detected.

With continually expanding Company operations, a Kingdom-wide groundwater protection program was developed, in 2004, titled Saudi Aramco Groundwater Protection Program (SAGPP). The SAGPP monitors the groundwater well network at all major Saudi Aramco facilities, and includes field sampling and laboratory analysis. Groundwater is constantly monitored for quality using sophisticated methods to ensure the protection of the environment and human health.

The SAGPP was designed to be proactive by monitoring groundwater quality at more than 50 sites throughout the Kingdom using a network of over 600 monitoring wells. Data from these sites are continuously reviewed and analyzed. When the data suggests shallow ground water impact, detailed site assessments are conducted. These assessments help to know the causes, understand the impact and plan effective solutions.

GroundwaterProtection

50 Saudi Aramco sites are monitored with more than 600 monitoring wells

Groundwater monitoring well


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These methods allow effective testing of any site where groundwater contamination is suspected. The evaluation is usually conducted in a systematic step-by–step approach. This determines the most appropriate course of action. Recent technological advancements, such as soil vapor surveys, allow more detailed field assessments to better study the source and extent of any groundwater contaminants.

The “Soil Vapor Survey” provides the ability to detect vapors in the soil to find whether a leak is in a pipeline or tank. This technology uses the latest sampling systems and laboratory equipment to find the source of groundwater contamination more efficiently. Advancements in computers allow the Company to develop “models” of groundwater aquifers. This tool is used to study the present and future effects on groundwater.

The aquifer models are used to plan future field investigations such as the installation of additional monitoring wells. The models also help to determine the level of impact on people and the environment, which is a process known as a risk assessment. The risk assessment results are used to determine a groundwater cleanup strategy. Models can also be used to evaluate various clean-up methods prior to field application.


GroundwaterProtection

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Waste management is an important part of Saudi Aramco’s environmental protection efforts. The Company works to minimize waste generation. This is done by identifying waste reuse alternatives and implementing environmentally sound waste disposal methods.

Saudi Aramco offices, industrial facilities and residential communities produce a wide range of waste. The residential communities generate household garbage and tree & garden trimmings waste. The operating facilities generate industrial wastes such as oily sludge and catalysts, while hospitals and laboratories generate medical and chemical wastes. Saudi Aramco’s waste management protocols encompass each type of solid waste.

Saudi Aramco actively promotes waste recycling. This has both economical and environmental benefits. There are components in almost each type of waste that can be reused, recycled or recovered. Saudi Aramco supports efforts to gather and reuse such materials rather than disposing of them, which would increase environmental footprint and financial expenditures. Reused and recycled materials consume fewer raw materials and less energy during manufacturing processes.

Recyclable materials must still be managed properly, but they are not considered wastes for disposal. This approach encourages finding useful alternatives for spent materials.

The Company began waste recycling programs in 1992. These included several types of its municipal wastes such as the paper, glass, aluminum and plastic recycling programs. Saudi Aramco’s recycling effort has been very successful.

Solid WasteManagement

Each type of waste has its own particular classification, hazard level, and management requirements


The first priority in waste management is to minimize waste at the source. One example of Company efforts, in this regard, is the use of mixers in crude tanks. These mixers significantly reduce the oily sludge that accumulates in the bottoms of these mega tanks. The use of advanced technologies in cleaning the tanks further reduces generated waste.

EPD environmental professionals conduct assessments in operating facilities to identify waste minimization opportunities. They focus on source reduction, process modification, material substitution, waste segregation, good house-keeping, reuse and recycling opportunities. Over 50 facilities have been assessed including all refineries and most of the gas plants. Other supporting waste management facilities’ actions have been initiated to reduce considerable waste and improve cost savings in over 150 waste minimization opportunities.

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Reduce

Recycle Reuse

Saudi Aramco recycles industrial waste as well, including spent catalysts that contain valuable metals such as platinum, copper, nickel, and zinc. For example, recycled catalysts are sold in the public market and the metals are recovered in specialized facilities. Even oily sludge is recovered to be used as feedstock to fabricate insulating materials. This results in creating value and reducing waste.

After waste minimization and recycling, proper waste management and disposal can be considered. Each type of waste has its own particular classification, hazard level, and management requirements. Detailed procedures have been developed to control the proper handling and disposal of waste. Detailed procedures for the design, management and closure of waste disposal facilities such as landfarms and landfills are also developed.

Saudi Aramco classifies waste into three classes. Class I waste is considered hazardous because it may react with water or air. It could also be flammable, corrosive to the environment, or toxic to humans. These types of wastes require special treatment/disposal methods to assure that they will not cause any threat to the environment.

Class II waste can be industrial or community wastes that are not hazardous. This class includes non-hazardous oily wastes, household garbage, sanitary sludge and non-harmful spent catalysts. This type of waste is disposed of at municipal landfills or by landfarming.

The last waste category produced by Saudi Aramco is Class III inert rubble and debris. This waste stream contains materials that will not harm the environment and require no special form of treatment or disposal. Examples of Class III wastes include cement blocks, bricks, glass, concrete, and excavated soil. These materials are well suited for reuse, by recycling or converting to reusable material, or for improving land by using them as common backfill in low areas and depressions.

Saudi Aramco works closely with local Saudi companies to develop leaders in waste management reuse and recycling. Company wastes are used as feedstock in the manufacture of new products. Some examples of recycling efforts include the re-refining of waste engine oils, recycling discarded batteries for metal recovery and plastics reuse, and the conversion of hydrocarbon solids into weatherproofing materials and road repair products. All these types of reuse/recycling activities are done by local Saudi companies and partners.

Saudi Aramco will continue to lead the Kingdom by actively managing our waste streams. The Company continues to expand waste management efforts into the Saudi communities. Recycling activities are good for the environment, and they promote proper and responsible attitudes of the public.


Solid WasteManagement

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Wastewater Treatment and ReuseSaudi Aramco assigns very high priority to the responsible use of the Kingdom’s precious fresh water resources. This is considered an essential element of good citizenship. Low precipitation rates do not compensate for the increasing consumption of the kingdom’s precious groundwater resources. Responsible management of this precious natural resource is essential to maintain it for future generations, especially as groundwater represents a major non-renewable source of supply.

The Company’s water conservation strategy consists of three pillars; optimizing water consumption, maximizing wastewater reuse and protecting groundwater resources. Saudi Aramco generates two types of wastewater, sanitary and industrial. Saudi Aramco has taken significant steps towards the treatment and reuse of both streams.

Sanitary wastewater is generally treated through sequential steps. These steps include preliminary and secondary treatment, after which, the treated wastewater is disposed of in evaporation ponds or marine environment. Tertiary treatment is also installed at selected locations after secondary treatment to generate wastewater with quality suitable for reuse.

The Company continues to invest in large wastewater upgrade projects, which currently include 14 industrial and 6 community projects. At the present time, more than 70% of the sanitary wastewater generated each year by Saudi Aramco communities and facilities is reused for landscape irrigation.

WastewaterTreatment & Reuse

Saudi Aramco assigns very high priority to the responsible use of the Kingdom’s precious fresh water resources. This is considered an essential element of good citizenship. Responsible usage of water resources is extremely important since groundwater represents a non-renewable source of supply.

…more than 70% of the sanitary wastewater generated each year by Saudi Aramco communities and facilities is reused for landscape irrigation.

Landscaping Using Reclaimed Water Sanitary Wastewater Treatment Plant

Saudi Aramco Environmental StewardshipSaudi Aramco Environmental Stewardship

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The Saudi Aramco developed GAC MBR provides the same treatment advantages as an alternative and market-available system called Powdered Activated Carbon MBR (PAC MBR). However, the Saudi Aramco technology does not have the same operating problems and costs associated with the PAC MBR system. Saudi Aramco’s GAC MBR allows more than 40% increase in the life expectancy of the expensive membranes used in MBRs, it requires only a small fraction of the replacement carbon, it generates 10% to 20% less sludge, it requires less energy to operate and it allows the wastewater to be reused in almost any process in a facility. This “Green Technology” will allow Saudi Aramco and other industries to reduce their needs for limited water resources and reduce the costs associated with treating the generated wastewater.

Carbon Enhanced MBR Pilot Unit

Wastewater


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A number of projects are underway to increase this percentage of wastewater reuse. After the completion of these projects, it is expected that Saudi Aramco will be reusing over 90% of its sanitary wastewater.

Saudi Aramco has also used treated sanitary wastewater for industrial purposes. Sanitary wastewater that is received from Riyadh City is used as the primary source of water for industrial applications at the Riyadh Refinery. The secondary treated sanitary wastewater is received in lagoons at the Refinery before it undergoes assorted treatment processes. The treated water is used in firewater and cooling water systems. It is also used as a feed to the Reverse Osmosis plant for various uses in the refinery.

The Company also made significant investments to build and upgrade many industrial wastewater treatment plants at its facilities to minimize the impact on the environment. Industrial wastewater is generally treated by removing oil and solids using different oil-water separation units in addition to filtration. The wastewater can then be disposed of in lined evaporation ponds or injected into the ground for oil reservoir pressure maintenance.

Saudi Aramco has developed the Granular Activated Carbon Membrane Bioreactor (GAC MBR) with assistance from a leading technology provider and subsequently developed it into multiple patents. This innovative system has been licensed for world-wide commercialization under the trademark of EcoRight MBRTM. The license calls for significant royalties paid to the Company for every GAC MBR sold, in addition to a stipulation requiring units sold in the GCC to be manufactured in Saudi Arabia.

The Company is currently investing in large water and wastewater upgrade projects

As with any other type of accident, prevention is the best approach. Saudi Aramco has taken steps to minimize the occurrence of both land and offshore oil spills. These include improvements in pipeline and vessel designs, loading procedures and tanker inspection systems.

Pipeline design has come a long way from the old rusting types. Today, corrosion control technologies have been implemented to maintain the integrity of the pipelines. Pressure valves, that withstand high pressure, have been installed. Detection equipment, which alerts operators of pressure differentials, has been added. Detecting changes in pipeline pressure helps eliminate one of the most common causes of pipeline leaks.

The design of terminal loading arms and automated loading procedures has also been improved. This prevents operational loading accidents, including the cost of lost cargo and downtime for cleanup.

To further minimize the likelihood of oil spill incidents, Saudi Aramco has instituted “The Vessel Vetting System” at its own terminals. Vessels with a previous spill record are not allowed entry into Saudi Aramco terminals until it can provide documentation from a recognized

Oil Spill Preparedness

Oil Spill Management is a major challenge to the oil industry. Oil companies have successfully reduced the number and volume of incidents. Remember that in any given day there are over 80 million barrels of crude oil moving around the world.

Saudi Aramco has implemented improvements in pipeline integrity, vessel designs, loading procedures and tanker inspection systems to minimize the occurrence of both land and offshore oil spills.


Ship Classification Society that it has corrected the cause of the spill. Any vessel that has had a previous spill anywhere in the world is recorded on the Lloyds’ List.

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With huge volumes of oil being transported, prevention can only go so far. The challenge to the industry is preparation to minimize the impact. Planning to minimize the impact of oil spill is an immense task given that oil spills can happen at any time, anywhere and in any amount.

As the largest oil producer in the world, Saudi Aramco has been highly successful in reducing the number and magnitude of oil spill incidents. This reduction was done by implementing preparedness measures to prevent spills.

Preparedness is the basis of Saudi Aramco’s oil spill contingency and response plans. The Company’s oil-spill program has four main elements:

1• Executive Management involvement

2• Contingency Plans

3• Equipment

4• Training

An oil spill committee of executives ensures that all resources are available for the oil spill response operations. The oil spill committee reviews and approves policies, strategies, plans and actions related to oil spill prevention, containment and clean-up throughout Saudi Aramco’s areas of operations worldwide.

Due to the global nature of the Company’s crude oil sales, Saudi Aramco has put together a Global Oil Spill Contingency Plan. This plan is consistent with the Company’s commitment to the preservation and protection of the marine environment, and supported by comprehensive local and regional contingency plans.

These plans outline steps to be taken before, during and after a spill. These steps help Company personnel in containment and cleanup operations. The Global Oil Spill Response Director ensures that plans are administered by rigorously trained oil-spill prevention and response teams.



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In case of oil spills, Regional Oil Spill Coordinators (ROSCs) are responsible to direct their respective Oil Spill Response Teams to combat the spills. ROSCs also process any impending claims associated with the spill. Oil Spill Response Teams include personnel from Finance, Legal and Environmental disciplines of the Company. There are currently regional contingency plans for the Arabian Gulf and Red Sea, in addition to the Vessel Emergency Response Plan for the Company’s international affiliates, including “Vela International Marine Ltd.”, which is Saudi Aramco’s subsidiary whose tankers transport Arabian crude worldwide.

The Company’s oil-spill plans are always updated to further enhance protection of human health and the environment. Oil-spill contingency plans contain background information and sections with step-by-step instructions on how to respond to a spill. Plans also contain biotope maps to ensure protection of vital marine habitats. Plans are designed to be effective in response actions and to satisfy ever-increasing regulations affecting oil-spill contingency planning.

The plans identify local high-risk areas, response options and resources available for combating oil spills.

Saudi Aramco realizes that any plan is only as good as the preparedness of the people who execute it. Therefore, the Company has trained employees in effective spill-control techniques, including in-house developed training programs.

The Company’s Global Oil Spill Response group conducts oil spill drills, tabletop exercises and hands-on training and coordination with counterparts within Saudi Aramco’s subsidiaries and affiliates.

The Company holds a number of major oil-spill exercises every year. Major oil-spill exercises have been conducted in several locations around the world, including Houston & Galveston, Texas, Morgan City, Louisiana, USA; Spain, the Netherlands, Portugal; Egypt, South Africa, United Arab Emirates, Oman and India. The Company also conducted joint oil-spill exercises with Saudi Government agencies for protection of water intakes for desalination plants and industrial facilities. The Company also provides hands-on training of personnel needed in combating medium to major oil spills.

Saudi Aramco has the world’s largest stockpile of oil spill response equipment among oil companies. This stockpile includes dedicated pollution boats and spray aircraft. On the Arabian Gulf, they are based out of Ras Tanura and Tanajib. On the Red Sea coast, they are based in Jiddah, Jizan, Rabigh, Yanbu’ and Duba.



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The equipment is maintained in ready condition at all times. Periodic reviews are conducted to make sure adequate response equipment is available at all our ports.

Saudi Aramco is also a charter member of the Regional Clean Seas Organization, a key regional agency involved in oil spill response. At the international level, Saudi Aramco is a member of several oil spill cooperatives. These include, Oil Spill Response limited, East Asia Response Limited, the Clean Caribbean Cooperative, Marine Industry Resources in the Gulf of Mexico and the Marine Spill Response Corporation. arena, and aids communications between oil

industry and relevant international organizations on environmental issues.

Actual events proved the effectiveness and reliability of Saudi Aramco’s preparedness for oil spills. In 1991, at the end of the Gulf’s second crisis, a huge quantity of oil was spilled in the Gulf from the Kuwaiti oil facilities. Despite the fact that Saudi Aramco had nothing to do with this spill which was estimated at several million barrels, it lived up to its responsibilities and commitments and started combating this spill, scoring remarkable successes. All of Saudi Aramco and other coastal facilities that relayed on in-taking seawater continued to work normally, Saudi Aramco managed to recover huge quantities of oil from the water and it contributed significantly to the establishment and operation of the Jubail Wildlife Rescue Center that was initiated during that crisis.


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The Company is also a member of the International Petroleum Industry Environmental Conservation Association (IPIECA). This association keeps its members informed of developments in the international environmental

Climate change related issues have witnessed unprecedented global level of media attention. Saudi Aramco shares the views of the international community on climate change, while realizing that Carbon Management brings opportunities and challenges to the industry.

Saudi Aramco Perspective on Climate ChangeSaudi Aramco has developed a plan on climate change that addresses the relevant carbon management activities in the Company’s operations. The growing need for additional, reliable and affordable energy supplies is among the most critical issues faced by all nations.

The development and implementation of technological solutions to reduce Greenhouse Gas (GHG) emissions are promoted. This also supports the continued delivery of reliable and affordable global energy supplies. In addition, the Company’s organizations are diligently working to address global carbon and other greenhouse gases. This can be achieved through established international methods such as the Clean Development Mechanism (CDM). Saudi Aramco reaches out to stakeholders in the petroleum industry, global research and international organizations’ to implement these efforts. All those involved in addressing GHG emissions must combine their efforts to achieve this goal.

Saudi Aramco Climate Change Research and Development (R&D) EffortsSaudi Aramco has developed a Carbon Management R&D Roadmap. This roadmap serves as a strategic objective to be attained by creating a research and development program to promote the development of economically sound carbon management technological solutions. These solutions would ensure that petroleum-based applications will be in line with future international Carbon Dioxide emissions regulations, while maximizing the value generated at all stages from the carbon cycle.

The Carbon Management R&D roadmap focuses on the following areas from a petroleum perspective:

• Reducing Carbon Dioxide emissions from mobile sources

• Enhancing Oil Recovery to address climate change using Carbon Dioxide injection

• Capturing Carbon Dioxide from fixed “stationary” sources

• Geological Sequestering of Carbon Dioxide in depleted oil reservoirs

• Promoting the development of Carbon Dioxide and carbon based industrial applications

• Building Industrial/ research alliances

CarbonManagement Efforts

Saudi Aramco is promoting research and development of advanced petroleum technologies, including carbon capture and storage. The Company supports Saudi Arabia’s strategy related to international cooperation in climate change while encouraging the use of Clean Development Mechanism to mitigate increasing greenhouse gas emissions.


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HRH, Prince Abdulaziz bin Salman, the Assistant Minister for Petroleum Affairs and Mr. Khalid Al-Falih, President and CEO of Saudi Aramco addressing the participants during the inauguration of the Carbon Sequestration Leadership Forum (CSLF), January 2008, Al-Khobar, Saudi Arabia

Saudi Aramco initiated research and development of Carbon Capture and Storage (CCS) technologies. The Company is also working with the international community to include CCS technologies as part of the Clean Development Mechanism (CDM) for all projects. This will make it easier for developed countries to invest in this technology’s development. This technology is important to the international community’s effort to reach significant greenhouse gas emissions reductions world-wide.

Saudi Aramco Intent on Clean Development Mechanism (CDM)Saudi Aramco realizes that CDM is a viable option. CDM will enable the industry to reduce emissions. The Company has initiated an internal evaluation of its Operations and Capital program to allow CDM to generate Carbon Emissions Reduction (CER) credits in a timely manner. This internal evaluation also recognizes the importance of preparing all the necessary internal steps on the CDM activities cycle to be ready for credit generation once a post Kyoto agreement is reached. One example of these steps is the initiation of several pilot projects to gauge the CDM project cycle and its alignment with CDM rules.

Cooperation to Implement Saudi Aramco Perspective on Climate ChangeSaudi Aramco is also working to develop cleaner burning transportation fuels. This work is being done in-house as well as in conjunction with other companies and institutions in Kingdom and internationally.

CarbonManagement Efforts

Carbon Dioxide Enhanced Oil Recovery Pilot (CO2 – EOR) to address climate change using injection

Over the past decade, significant efforts and resource investments have been made. The intention of these investments is to develop technological solutions that will reduce man-made GHG emissions in general and Carbon Dioxide in particular. On this front, Saudi Aramco is collaborating with several major, intergovernmental, R&D, and industrial organizations.

Saudi Aramco initiated research and development of Carbon Capture and Storage (CCS) technologies

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Today the Company industrial hygienists monitor and analyze data to control occupational health hazards. This allows operating facilities to better manage health risks in the workplace.

Two major programs have been successfully implemented by Saudi Aramco:

Occupational Health Hazard Assessment (OHHA)The OHHA monitoring & control program is designed to identify and reduce health risks in the work environment. These assessments verify that standards are met for employee chemical, physical and biohazard exposures.

Personal Protective Equipment (PPE)

The hazards evaluated include, among others, noise, organic vapors, dust, fumes, vibration and asbestos. Saudi Aramco also has well-established programs covering hearing protection and personal protective equipment (PPE).

Industrial Hygiene focuses on the environmental stresses at the workplace, which has the potential of adversely influencing worker’s health. Since 1957, Saudi Aramco has instituted a series of proactive industrial hygiene programs to protect the well-being of its workforce.

Industrial Hygiene Program


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Hazardous Materials Communication (HAZCOM Program)Saudi Aramco is the first Company in the region to develop and implement this program. The intent of the program is to reduce the risks and exposures involved in working with hazardous materials in the workplace. The potential hazards are then communicated to Company and contractor employees.

Chemical Hazard Bulletin (CHB) HAZCOM Label

One key element of the HAZCOM Program is the standardized Saudi Aramco HAZCOM labeling system for chemical containers. HAZCOM labels are used together with the Chemical Hazard Bulletin (CHB) to make sure that information about chemical hazards in the workplace is communicated to all employees. The CHB is a single page English/Arabic document which summarizes all known health hazards associated with a chemical product. The CHB includes information on health, fire and reactivity hazards, proper handling, storage and disposal, and first aid requirements. HAZCOM Labels & CHBs have been computerized through the SAP EH&S system allowing operating facilities immediate access to these documents.


Industrial HygieneProgram

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In the 1940s, with the advent of commercial oil discoveries in Saudi Arabia, Malaria, Cholera and Other Infectious Diseases were endemic. Early on, Company physicians understood that clinical care alone was not enough and a formal support program was established.

EnvironmentalHealth Program

They turned to “Sanitarians,” as they were known then, to develop disease eradication programs. Strategies were implemented to control insects and other pests; monitor food and water supplies; advise on proper handling and disposal of sewage and solid waste. Within a few years, malaria and cholera were virtually eradicated from Saudi Arabia, and a number of other infectious diseases were under control.

An Environmental Health program was initiated, which assisted local food growers, dairy farms, beverage manufactures, medical facilities and water producers. They were shown how to improve hygiene standards and quality controls in their processes to produce the safest and highest quality products. Those local Companies who implemented the stringent quality controls in their production process were added to the list of Approved National Manufacturers and Suppliers. Only these approved companies could supply Saudi Aramco with their products.

The Environmental Health Unit developed the “Saudi Aramco Sanitary Code” incorporating strict and practical standards of environmental health. These standards were drawn from many sources, including local health ordinances, regulations and guidelines circulated and publicized by Saudi Arab Government agencies, the World Health Organization, US and European legislation, and codes of practice developed by industry.

In 1991, the “Saudi Aramco Sanitary Code” was issued mandating Environmental Health Programs Company wide.

Environmental Health Inspection ProgramEnvironmental Health deals with those aspects of human health and disease that are determined by factors in the environment. It also refers to the theory and practice of assessing and controlling factors in the environment that can potentially affect health. Environmental health scientists use environmental monitoring and analytical methods to evaluate health risks in relation to food and water. All water resources in Saudi Aramco from the well to consumption are monitored. The monitoring ensures that the potable water supply is free from harmful bacteria and chemicals so that the water supplies are always safe to use and to drink. Employees specialized in environmental health also monitor Company and contractors facilities to control potential health hazards.

Regular inspections for potable water supply


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Saudi Aramco’s Environmental Health programs include:

• Food safety monitoring and surveillance programThe Environmental Health unit regularly audits local National Manufacturers that are on the Company list of approved suppliers. These include bakeries, dairies, meat processing plants, water and beverage bottling companies, medical equipment and pharmaceutical companies. Audits are done to make sure that the suppliers are complying with strict regulated standards and implementing the best available technology to ensure highest quality products that are safe for the consumer.

Regular inspections for local national manufacturers

• Monitoring Saudi Aramco communities and industrial plantsEnvironmental Health specialists conduct regular inspections of Saudi Aramco communities, dining halls, snack bars, swimming pools, recreation facilities and housing to protect the health and welfare of employees and their dependants. This is to assure compliance with Company standards and that hygienic conditions are being maintained. Environmental Health also monitors sanitary conditions in industrial plants Company wide to ensure a healthy working environment.

Regular inspections for Saudi Aramco swimming pools


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Nowadays most people are aware of medical x-ray machines, CT Scanners, and other similar technologies used in many medical centers. All these machines use ionizing radiation that allows us to look inside the body without surgery.

RadiationProtection

What most people may not realize is that ionizing radiation is also used in important industrial applications as well. Saudi Aramco uses many of these radiation based technologies in various Company operations.

Radiation technology plays an important role in the oil industry. It has uses in:

1• Well logging operations use radiation sources to understand the types of underground formations for oil/gas production

2• Non-destructive testing technologies such as industrial radiography make extensive use of ionizing radiation to ensure the safety and integrity of pipelines, vessels and process equipment.

3• Radiation-based Multiphase flow meters are used at producing facilities on land and offshore.

4• Alloy analyzers usage in mechanical shops identify the exact composition of various metallic alloys.

5• Radioactive tracers are used to assess gas wells stimulation as shown in the figure.

6• Density/moisture gauges are used during well site preparations.

7• Fluorescent and Diffraction X-ray systems are used in Company laboratories for advanced analysis of samples and equipment.

8• Company medical centers use many radiation applications such as diagnostic x-rays, dental x-rays, CT-scanners, Gamma Cameras, Radiation Therapy, etc.

Employees, the public and the environment are the most important part of a successful radiation protection program. By prioritizing training and certification of employees, the Company currently has more than 20 certified radiation protection officers, in addition to developing and issuing a comprehensive radiation protection manual.


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Naturally Occurring Radioactive Materials (NORM) are also encountered in almost all mining and oil and gas operations. Saudi Aramco is seen as a leader in the field of NORM management and has confirmed this leadership role in leading the revision of the NORM guidelines for International Oil & Gas Association (OGP), which was issued in 2008.

Like other technologies, radiation technologies require protection measures to ensure that the desired benefits are achieved while minimizing adverse effects to workers, members of the public and the environment. To achieve this, the Radiation Protection Unit (RPU) was established with the objective of maximizing the benefits from radiation-based technologies by ensuring the proper handling and use of ionizing radiation sources.

A world class radiation protection program was developed and implemented Company-wide to ensure that the highest radiation protection standards are pursued in acquiring, storing, handling, transporting, securing and maintaining ionizing radiation sources. These protective measures are implemented to keep workers, the public and the environment safe from any harmful effects.

Radiation protection standards and procedures cover all aspects of the various applications of radiation technologies. For example, Saudi Aramco produced a comprehensive radiation protection manual covering many aspects of radiation protection in addition to issuing several radiation protection standards.

All workers using radiation sources are required to use radiation monitoring devices. The radiation exposure levels of Saudi Aramco employees working with radiation are continuously monitored. The Company uses the finest monitoring devices to make sure that workers’ radiation doses are kept within limits, as specified by international standards.

At all Saudi Aramco facilities, there are strong monitoring programs in place including the management of all contractors who provide radiation services for the Company. For example contractor workers are only permitted to conduct industrial radiography in Saudi Aramco facilities/projects if they have passed a Saudi Aramco certification exam. Periodic testing is conducted to ensure skill levels are maintained for all users of radiation sources.


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Saudi Aramco radiation protection experts regularly check the procedures and controls for radioactive sources and radiation-producing equipment. In addition, the experts verify that suitably trained and experienced personnel are available within the organization to ensure the radioactive sources are handled, used, stored and transported safely.

Naturally Occurring Radioactive Materials (NORM) are also encountered in almost all mining and oil and gas operations. Saudi Aramco has developed a comprehensive and integrated strategy to control all aspects of work related to NORM. This strategy includes all aspects associated with Company operations to ensure protection of workers, public and environment. A Company procedure was developed to control different aspects of NORM. NORM Training courses and awareness sessions are regularly conducted throughout the Company.

Comprehensive NORM surveys were conducted for all Company operations. Measures to reduce NORM impacts were customized for various operations. This effort ensured that protective measures do not hinder operations or reduce efficiency. An example of such measures is the control of reclaimed drilling pipes.

All equipment found contaminated are subjected to a specialized and thorough decontamination process before being released.

In the picture, a worker is scanning reclaimed pipes to ensure that they are free of NORM contamination

NORM is encountered in almost all operations that involve extraction and processing of raw materials from geological formations. The radiation exposure levels of Saudi Aramco employees working with radiation are continuously monitored.

Saudi Aramco has been very proactive in sharing its experience in NORM management. The Company’s leadership in NORM management has been recognized among other oil companies. Saudi Aramco led the development of NORM Guidelines for National Oil Companies (NOCs) in 2006.

The Company also took the lead in revising the NORM guidelines for International Oil & Gas Association (OGP) when it was issued in 2008. Saudi Aramco is recognized as a leader in the field of NORM management. The Company has had significant success in establishing a common framework for NORM management around the globe.


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SA Environmental Stewardship

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