Al-Falih Addresses Tsinghua University

BEIJING, November 22, 2009 -- Khalid A. Al-Falih, president and CEO of Saudi Aramco, in a recent trip to China addressed faculty, staff and students of Beijing’s 98-year-old Tsinghua University, known as the “MIT of China.”

In a wide-ranging speech Nov. 13, Al-Falih noted ties with China are growing from strength to strength and closer links are being forged between Saudi Aramco and Chinese companies in the petroleum sector and beyond. Chinese companies are increasingly expected to take on a bigger role in providing high quality goods, materials and services matching Saudi Aramco’s high standards in an ever changing globally competitive landscape, he said

Al-Falih further outlined the company’s strategies to continued success, citing the tripod, or the “Three Ts: Technology, Talent and Teaming,’’ which have become significant drivers of the company’s success to being a stable and reliable energy provider to global economic powerhouses that now includes China

The “Three Ts” are necessary hallmarks for the company to excel in various fields well beyond the role of being a traditional oil supplier to global markets, he added in his address.

Likening the company’s philosophy to Tsinguha University’s Latin motto of “Facta non Verba” or “Actions, Not Words,” he explained how new technologies, a wide pool of human capital and global partnerships are driving the creation of a knowledge-based economy in Saudi Arabia.

“The “T” for technology comes in many shapes, sizes and applications, and Saudi Aramco has always utilized cutting-edge applications. We have evolved from a company that relied primary on proven commercial technologies to one that is actively involved not only in developing proprietary tools and solutions for our unique challenges, but also in shaping the technology agenda for the industry,” Al-Falih said in his address.

“No tool is more powerful than the human mind, which is why that first “T” for technology means little without the second “T for Talent” and the ability to leverage the skills, experience and innovative ideals of our people,’’ Al-Falih said.

The company continues to invest in heavily in professional development, and maintains a corporate culture of excellence in the work place, encouraging individuals and teams to excel in their careers and projects.

“The petroleum business still comes down to people and their ability to find innovative and effective solutions to a wide range of challenges. At Saudi Aramco, our workforce is our most significant competitive advantage.’’

Through the third “T” – “Teaming” up with leading global petroleum and chemical companies, the company has been able to get greater value and return on investments along the petroleum value chain. Pursuing partnerships through joint ventures in the Kingdom of Saudi Arabia and abroad, which includes Sinopec of China, is helping the company to becoming more integrated as a petroleum enterprise, Al-Falih said.

“We also view our dealings with suppliers, vendors, contractors and technology developers as mutually beneficial long-term partnerships, and strive to achieve win-win outcomes with those companies and institutions.”

As the global economic landscape undergoes changes, Saudi Arabia and Saudi Aramco are rising to meet the challenges head-on, he said. The company has now become a key driver as well as a participant to confront the global challenges caused by water and energy scarcity, degradation of the environment and ecological systems, and diseases. These challenges also presented opportunities, thrusting the Kingdom and Saudi Aramco into action into developing the King Abdullah University of Science and Technology (KAUST) on the Red Sea coast.

Al-Falih emphasized that in the new Knowledge Age, the competitive edge will come through harnessing human talent, which would be a prerequisite to developing the necessary technologies needed for sustainable development

Tsinghua University, he noted, could play a role in the knowledge transformation taking place in the Kingdom through collaborative work with Saudi Aramco and KAUST.

“We look to one another from the opposite sides of Asia for ideas, information and insights, and come to explore opportunities for greater intellectual exchange.’’