FUELLING SUCCESS THROUGH COLLABORATION
FUELLING SUCCESS THROUGH COLLABORATION
With businesses spanning agriculture, lubricants, commercial, and petroleum, Alkhorayef Group is a family business with 67 years in industry.
Headquartered in Dammam, Saudi Arabia, and with operations across three continents (Middle East, Africa, and Latin America), the Group’s oil and gas operation, Alkhorayef Petroleum provides an integrated approach to its services in research and development, engineering, manufacturing and field servicing of its artificial lift products and services.
Core to Alkhorayef Petroleum’s operations is the design, engineering, and manufacturing of its electrical submersible pump (ESP) solutions, the only business to do so in the Middle East.
“We pride ourselves on having developed the best technology in the industry. Our ESP solutions are known for their quality and reliability,” explained President of Alkhorayef Petroleum, Mohammed Doghmi, “our clients trust our products, and we’re confident they are the best on the market”.
ALKHORAYEF PETROLEUM
PROJECT
DIRECTED BY: ADEL MHIRI
ARTICLE
WRITTEN BY: LAURA WATLING
President of Alkhorayef Petroleum, Mohammed Doghmi
ALKHORAYEF PETROLEUM
With more than 43 years of experience in the industry, Alkhorayef Petroleum has been able to develop its technology over time, learning from mistakes and collaborating with clients and other industry experts along the way.
“As we’re a lean business compared to some of our competitors, we’re able to fast-track technology innovation in a unique way. We’re more agile than our competitors and able to take more risks,” Mohammed added.
In addition to its ESP solutions, Alkhorayef Petroleum offers production facilities to facilitate design, engineering, build, operation, and maintenance services for the oil and gas and water sectors.
“Our production facilities enable our clients to capitalise on our expertise and innovation during the treatment, separation, processing, and transfer of produced fluids. This allows them to realise greater efficiencies and significant cost savings,” shared Mohammed. Alkhorayef Petroleum’s production
facilities have been operational for 20 years, in which time the business has collaborated with tech providers on over a dozen projects, ranging from $15 million to $500 million.
Most recently, Alkhorayef Petroleum added wireline services to its portfolio, offering high-tech services to the oil and gas industry, including Advanced Horizontal Production Logging (H-PLT) with the Multiple Array Production Suite (MAPS).
Recognition from the Kingdom
Recognised as the leading artificial lift systems manufacturer and services provider in the GCC countries, Africa and Latin America by Saudi Arabia’s Public Investment Fund, it was announced in November 2023 that Alkhorayef Petroleum will be the recipient of PIF’s investment - a transaction which is now concluded.
As part of the primary capital investment, PIF will become a shareholder with 25%
ownership of the business by way of a capital increase and subscription to new shares, whilst Alkhorayef Petroleum will benefit from PIF’s investment by supporting its growth strategy in local and international markets.
This investment demonstrates PIF’s broader efforts to develop Saudi Arabia’s equipment and service landscape as part of the country’s Vision 2030.
From Alkhorayef Petroleum’s perspective this gives the business a fantastic opportunity to accelerate its existing initiatives to expand.
The initiatives include strengthening Alkhorayef Petroleum’s ESP business whilst adding additional technology to its services in MENA. It will also look to expand geographically, adding to its 11 locations, with its sights set on North America and critical countries in South America and central Europe.
“The investment also gives us an interesting opportunity to diversify our business into the mining sector in line with Saudi Arabia’s Vision 2030,” explained Mohammed, “we are currently expanding our expertise in logging for mining,” he added.
ALKHORAYEF PETROLEUM
Business Growth Through Sustainable Initiatives
Alkhorayef Petroleum will also use PIF’s investment to bolster its research and development into ESG.
The OEM has developed a couple of projects intended to reduce the gas flaring and CO2 emissions.
“We have two ongoing projects where we
have been able to eliminate the flaring of over 40 million cubic feet of gas per day,” shared Mohammed, “as well as this, we are developing the technology in our ESP products to support our client’s CO2 reduction”.
Alkhorayef Petroleum is one of only a few companies to develop and implement permanent magnet motors within its products. This helps to significantly reduce energy use by 10-15%.
ALKHORAYEF PETROLEUM
“We are both proud and honoured to have received investment from PIF,” commented Mohammed.
With the PIF transaction concluded and initiative in motion, Alkhorayef Petroleum now has its sights set on floating an IPO in Saudi Arabia, another significant milestone for the business.
Bolstering the Kingdom’s Vision 2030
With a double digit growth predicted for the business, Mohammed described the next 12-18 months as “promising”.
“There is significant demand for our products and technology, which further supports our plans for expansion,” he said.
In the near term, Alkhorayef Petroleum will also focus on localisation - both of its manufacturing and supply chain and talent acquisition.
“In line with Saudi Arabia’s Vision 2030, we are committed to bringing more of our manufacturing expertise and supply chain in-country, as well as supporting local talent development,” explained Mohammed.
www.alkhorayefpetroleum.com
