Saudization Planning

In the area of Saudization planning we recommend the following:

• Draw up admin area or departmental contractors' Saudization plan for the next
5-10 years and beyond and this plan should receive the appropriate level of
support & leadership from your management. Please refer to the 3-staged
planning template attached to this document.

• For supplemental manpower we recommend to identify all employees falling

under the new definition which states that supplemental manpower are
?Employees of a Contractor who perform work for, and under the
supervision and direction of, Saudi Aramco for specified periods of
more than six (6) months under Reimbursable Cost and/or Time Unit
Rate contracts.' After that draw up replacement table with dates as it was
done for Saudi Aramco employees. For example, Mohammad is a new hire and
John is an existing supplemental employee. We planned replacing John on
xx/xx/20xx which gives enough time for training and developing Mohammad in
order to take on John's responsibilities.

Expatriate employee Saudi employee Replacement date

John Smith Mohammad Ali xx/xx/20xx
XYZ WSA xx/xx/20xx

• Also, we recommend using some strategies and methods that could promote the
Saudization an example would be to require less experience years for the Saudi
while maintaining the quality. This option might require double manning for a
while in order to bring the Saudi employee up to speed.

© Copyright 2007 Saudi Aramco. All Rights Reserved -1-

 Planning Stage 1: Each Contractor

Company: A
Contract(s): List
Proponent(s): List

Job Title 2005 2006 ....2015

Saudi Expat Saudi Expats Saudi Expat
Pipefitter 1 3 2 2 3 1
Electrician 3 8 5 9 8 2
Welder 3 7 4 8 9 2
Machinist 2 6 4 7 9 2
Foreman 1 3 1 3 3 1
Total 10 27 16 29 32 8
% 27% 73% 35% 65% 80% 20%

The first stage is for each contractor company to prepare the manpower forecast for the
next 5-10 years & share it with the proponent. This forecast lists all job titles of the
current manpower (Expatriates vs. Saudis) then the plan for the next year where the
Saudi component would increase and the same for the year after and so on for the next
10-years. This way contractors will plan to meet the annual increases in the Saudization
percentages mandated by Saudi Aramco and will be able to continue their business with
the company.

© Copyright 2007 Saudi Aramco. All Rights Reserved -2-

 Planning Stage 2: All Contractors Data gathered by proponent

Proponent: Department/Admin Area

Contract(s): List active contracts
Contractors: List A. B. C. D. ....

Job Title 2005 2006 ?..2 015

Saudi Expat Saudi Expat Saudi Expat
Pipefitter 10 30 20 20 30 10
Electrician 30 80 50 90 80 20
Welder 30 70 40 80 90 20
Machinist 20 60 40 70 90 20
Foreman 10 30 10 30 30 10
Total 100 270 160 290 320 80
% 27% 73% 35% 65% 80% 20%

This is the stage where the proponent gathers all of his contractors' data done in stage
one. This way the proponent will be able to know the jobs that need to be filled with
Saudis and then advise the contractors to start training the needed manpower. Also, we
hope that from this we can build a picture for the company's requirements.

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© Copyright 2007 Saudi Aramco. All Rights Reserved
 Planning Stage 3: Hi gh Level Tracking

Organization: Department/Admin Area

Type of contracts: List

Year Ending 2005 2006 2007 ....2015

Total active contracts 30 30 31

Contracts with 2 7 18
Contracts expiring 5 10 10
New/amended 5 11 12
Total manpower 995 950 1,025
Saudis 269 323 420
% Saudis 27 34 41

In this stage the proponent will have a high level tracking of all his contracts by
expiration & the inclusion of provisions for the next 10 years. The proponent should see
an increase in the number of contracts with provisions which should in turn reflect an
increase in Saudization percentages.

© Copyright 2007 Saudi Aramco. All Rights Reserved -4-