Driving sustainability in Saudi Arabia

Saudi Arabia currently holds around 17 percent of the world’s proven petroleum reserves and the oil and gas sector accounts for about 50 percent of gross domestic product. With such a high activity market, the Kingdom is an attractive prospect for many oilfield service companies. 

ChampionX, a global leader in chemistry solutions and highly engineered technologies, entered the Saudi Arabia market more than 30 years ago with a long-term growth strategy. Mohammed Al-Khalifa, general manager of ChampionX’s joint venture in Saudi Arabia, Champion Arabia Ltd., discusses, with Energy Connects, the evolution of the country’s energy sector and the business’ ambitions for the future. 

What attracted ChampionX to deliver operations in Saudi Arabia? 

Saudi Arabia has always been a strategic growth area for the business as it is a very active market. With such high levels of production, we recognised that our chemical products were well-suited to support the sector’s key objectives of enhancing existing hydrocarbon recovery while delivering greater efficiencies.  

In support of the In-Kingdom Vision 2030 and Total Value Add (IKTVA) programme, we understood the importance of having a local presence in the Kingdom very early on, and localisation has been a crucial focus for ChampionX throughout our 30-year history. In 1982, we opened our facility in Dammam with just six people. We now have 46 people in-country, with 56 percent Saudi nationals. We recognised the value of having a team of skilled, local people who have the knowledge and expertise of the country to effectively understand and address our customer requirements, and I am very proud of the team we have in place today. 

Mohammed Al-Khalifa, General Manager of ChampionX’s joint venture in Saudi Arabia.

How has the market evolved in the last 30 years? 

When we first entered Saudi Arabia, we delivered a range of oilfield chemical products, including corrosion and scale inhibitors and emulsion breakers, and while they are still an important element of our offering, our services have vastly evolved in the last few years as we adapt to meet new operator demands.  

The oil and gas market has matured significantly in the last 30 years, which has resulted in more mature, ageing assets. In recent years, we have experienced greater emphasis on protecting downhole equipment and maximising asset life, particularly across flowlines, pipelines and surface equipment, so we’ve been working closely with our end clients to deliver targeted solutions to address this challenge. A key aspect of our work in Saudi Arabia is assessing all areas of our product lifecycles, and not just the chemical compound itself to ensure we’re driving tangible results. As the country continues to bring new wells online, this has also created more opportunities for companies like ChampionX to be involved from the earliest stages of production to ensure production is maximised from the offset. 

In addition to maturing assets, operations have also become more complex as operators continue to place increasing priority on maximising recovery while delivering greater efficiencies. We invest heavily in research and development and through early engagement, our experienced teams can develop bespoke solutions which meet operator challenges at the earliest stage, delivering maximum results from initial start-up. 

Operations have also become more complex as operators continue to place increasing priority on maximising recovery

What do you think are the key trends we will see in Saudi Arabia over the next 5-10 years? 

Sustainable operations and supporting the energy transition are clear priorities for the global energy sector, and it has become increasingly important in Saudi Arabia. We are seeing greater emphasis on clients requesting sustainability evidence as part of the tendering process to ensure their supply chain is supporting their energy transition goals. 

For ChampionX, this is a welcomed shift as we are deeply passionate about reducing carbon emissions and improving lives through responsible operations, and we are working to establish operating principles and business models to support this vision across all areas of our operations. 

The application of digital solutions has also become more prominent as operators realise the benefits of technology, such as AI. This trend will undoubtedly grow in the comings years as technology continues to advance. We have been working to bring together technical advancements and multi-functional products combined in one package to deliver highly efficient products for our clients, and it is already delivering substantial project efficiencies in-country. 

Clients requesting sustainability evidence as part of the tendering process to ensure their supply chain is supporting their energy transition goals

What are ChampionX goals for the future? 

As we emerge from the Covid-19 pandemic, we are excited to accelerate our growth in the Kingdom and are currently looking to increase our blending and manufacturing capabilities, aligning with IKTVA objectives, to deliver a local service from start to finish. 

We will also be supporting increased localisation in Saudi Arabia and have recently begun our first internship programme this year. There is huge value to be garnered from investing in the next generation, and we’re excited to be welcoming students into our facility in Dammam this year to share our knowledge and experience in the sector. I hope by exposing students to the breadth of opportunities within the industry, it will encourage the younger generation to pursue a career in the energy sector.