SPARK is an energy city megaproject designed to strengthen Saudi Arabia’s position as a global energy, industrial and technology hub
Image: Once operational, SPARK is expected to create thousands of direct and indirect jobs. Photo: Courtesy of Saudi Arabian Oil Co.
King Salman Energy Park (SPARK) and Dubai-based Oilfields Supply Centre (OSC) signed an agreement to establish OSC as an anchor tenant at SPARK.
SPARK is an energy city megaproject designed to strengthen Saudi Arabia’s position as a global energy, industrial and technology hub.
OSC intends to develop a business incubator, called the Common User Supply Base (CUSB), in collaboration with Saudi Aramco, to support the oil and gas industry in the Kingdom, through accelerating the growth of small and medium-sized enterprises (SMEs) in the energy sector.
OSC to invest £360m to contribute to localisation objective of SPARK
In addition, OSC is investing approximately $450m (£360m) over the next two years, towards SPARK’s objective of localising more than 300 new industrial and service facilities.
Oilfields Supply Center corporate affairs director and general manager Iqbal Mohammad Abedin said: “OSC‘s investment in SPARK and collaboration with Saudi Aramco will position the project as a major enabler for oil and gas manufacturing and service companies and related SMEs.
“It will enhance their localization plans by both increasing local procurement and value added manufacturing activities, as well as increasing the employment of skilled Saudi nationals.”
The CUSB is designed to be an industrial facility that provides industrial buildings to host companies and supply with integrated services like logistics, technical engineering services, and business support.
As a first of its kind facility in Saudi Arabia, CUSB is expected to be the largest in the region with a footprint of over 1m2 and a potential expansion of an additional 500,000m2.
Saudi Aramco president & CEO Amin H. Nasser said: “OSC’s investment marks an important step in SPARK’s journey to become an integrated energy, industrial, technology and services hub. It will contribute to supply chain localization, boost job creation and support the overall advancement of the Kingdom’s energy sector.”
“OSC’s firm commitment is a strong vote of confidence on SPARK’s value proposition in attracting global and regional companies. Their participation will help advance our strategy to enable the growth of a vibrant ecosystem.”
Once operational, SPARK is expected to create thousands of direct and indirect jobs and contribute more than $6bn (£4.7bn) per annum to the Kingdom’s GDP.