Role of Effective Collaboration & Partnering in Technology Development a Case Study

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1 Role of Effective Collaboration & Partnering in Technology Development a Case Study Ibrahim A. Abba Research & Development Center Saudi Aramco GPCA Research & Innovation Summit Thursday March 13, 2014 Copyright 2014, Saudi Aramco. All rights reserved.

2 "Companies cannot grow through cost reduction and reengineering alone... Innovation is the key element in providing aggressive top-line growth, and for increasing bottom-line results Davila & Colleagues

3 Collaboration is a process where multiple parts of an organization or partnerships work together toward a set of common goals Progressive view of collaboration-> knowledge management centric to innovative centric Collective intelligence trusted networks input diversity Hard data & knowledge strong connection collaboration weak connection collaboration What do we know? what does my community know? can anybody help here? [Ref: Deloitte Report]

4 How do you decide on an effective collaboration engagement? Multiple models to be successful, should consider these key elements

5 Partner long-term with invested human resources from all and access available innovation capacity through academia, consortia, etc, Best in class in field(s) of interest Multiple capabilities IP sharing Strong academic/admin structure Commercialization Structural Capital Relational Capital Readiness to collaborate Willingness to form local multilateral relations Network value Proximity to markets Shared Aspirations Human Capital Sustained relationships National agenda Strategic fit Technical expertise Resource development or seconding Technology and knowledge transfer Talent acquisition Realize value of synergy thr

6 Through careful apriori prioritization and positioning of research portfolio Strategic impact Economic benefit Increased reputation Contribution to National Agenda High R&D Catalyst Catalyze global R&D via active management and funding R&D Leader Lead domain globally and allocate significant inhouse resources Requirement to differentiate Scarcity of R&D/Technology availability Uniqueness Company expertise in domain Strategic impact Low Buyer Acquire technologies R&D Partner Engage in research together with other partners ("one among many") Low High Requirement / ability to differentiate

7 Collaboration/partnership intensity can vary - R&D domain role directionally determines form of partnership

8 Case study: High severity fluid catalytic cracking technology development HS-FCC TM Reaction Conditions Proprietary Catalyst Maximum Propylene Yield Unique Reaction System

9 Worldwide partnership in innovation with invested human capital from all

10 Technology Development Progression Academia played critical role in establishing foundation BPSD pilot at KFUPM Kingdom of Saudi Arabia

11 Technology Development Progression Demonstrated by industrial partners BPSD pilot at KFUPM Saudi Arabia BPSD Demonstration plant in Ras Tanura, Saudi Arabia

12 Technology Development Progression Scaled-up to semi-commercial size by industrial partners BPSD pilot at KFUPM Saudi Arabia BPSD Demonstration plant in Ras Tanura, Saudi Arabia (14) BPSD Semi-commercial unit in Mizushima, Japan

13 Technology Development Progression Completed preliminary commercial evaluation Chiyoda Courtesy of Chiyoda Corporation (14) BPSD pilot at KFUPM Saudi Arabia 30 BPSD Demonstration plant in Ras Tanura, KSA BPSD Semi-commercial unit in Mizushima, Japan BPSD Commercial unit preliminary evaluation

14 Technology Development Progression FEED underway for commercialization Chiyoda FEED underway for commercialization x300 X100 X (14) BPSD Pilot at KFUPM Saudi Arabia 30 BPSD Demonstration plant in Ras Tanura, KSA BPSD Semi-commercial unit in Mizushima, Japan ~ BPSD Commercial unit preliminary evaluation

15 High-olefins catalytic cracking technologies HSFCC technology demonstrated over a wide range of feedstock Propylene Yield %wt HS-FCC Resid to Propylene High Olefins FCC DCC Heavy Resid Light Resid VGO High H 2 content VGO HS-FCC, a new member to the family

16 HS-FCC technology presents opportunity for refiningpetrochemicals integration ~ ~ HS-FCC Unit Petrochemical Integration Main Products C 2 - Gas Purification Steam Cracker Polymer Grade Ethylene Fractionator & Gas Recovery C 3 C 4 LPG Treatment & Separation C 3 Splitter Polymer Grade Propylene Naphtha Splitter C 4 s C 4 SHU Propane C 4 Paraffin-rich Cut HCN Aromatics Complex ParamaX Hydrogen Benzene Paraxylene Orthoxylene FEED HS-FCC Polynaphtha TM LCN Recycle LCO Slurry / CLO C 8 -C 12 Olefins FlexEne

17 Concluding Remarks Identify individual organizational strengths that can yield synergy and leverage available capital and human resources. Set targets that are common to each organizations interest yet are noncompeting. Establish clear relationship governance model committee, task force, periodic dedicated meetings, enabling: knowledge and know-how transfer, frame work on IPRs, etc Crowd source targeted technology quests, online, etc. the three Ts

18 Three important success factors for delivering successful R&D Teaming Technology Talent the three Ts

19 Role of Effective Collaboration & Partnering in Technology Development a Case Study Ibrahim A. Abba Research & Development Center Saudi Aramco GPCA Research & Innovation Summit Thursday March 13, 2014

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