The pace of investment in Saudi Arabia’s King Salman Energy Park (SPARK) is accelerating, with National Petroleum Services Company (NAPESCO) signing an agreement with SPARK in August to invest US$100mn in a new facility
The facility will serve the oil and gas upstream sector in Saudi Arabia, SPARK has announced, and manufacture downhole tools, gyroscopes and other oilfield equipment, adding to the energy value integration vision of Saudi Arabia and SPARK.
Also announced this month were plans for Al Khobar-based Target United Energy (TUE) to invest in new facilities dedicated to downhole tools and whipstock, which will serve as a platform for TUE in the region.
They join the likes of Schlumberger, Halliburton, Yokogawa, Baker Hughes, Halliburton, Al-Rushaid Group and Sawafi-Borets, who will develop industrial facilities, factories and services centres to serve the energy sector in the Kingdom and the region. It is forecast that foreign direct investment in SPARK will exceed US$2 billion over the next two years, one of the largest projects being the US$450mn investment in the construction of an SME hub by Oilfields Supply Company Saudi (OSC Saudi).
Based in Al Khobar, Eastern Province, and operated by Saudi Aramco, SPARK is a fully integrated global energy and industrial hub designed to fuel the growth of the energy sector as well as driving the diversification and localisation agenda. It is attracting industrial investors across five strategic sectors: Upstream, Downstream, Petrochemicals, Power, Water and Wastewater.
60 per cent of its first phase is now complete, consisting of infrastructure, roads, utilities, and real estate assets established across 14 sq km, in addition to a dedicated three sq km logistics zone and dry port.
SPARK is set to be completed in 2021, following which it is set to add 22 billion Saudi Riyals annually to the Kingdom’s gross domestic product by 2035, while creating thousands of new highly skilled job opportunities.
