Dubai's OSC inks tenancy contract for Saudi Arabia's Spark energy hub
Oilfields Supply Centre to invest $450m with Saudi Aramco over two years to develop Spark's CUSB business incubator
Dubai-based Oilfields Supply Centre (OSC) and King Salman Energy Park (Spark) – the Saudi Aramco- and Modon-backed energy megaproject launched by Crown Prince HRH Mohammed Bin Salman in December 2018 and expected to boost Saudi Arabia's GDP by $6bn (SAR22.5bn) – have signed an agreement to establish OSC as an anchor tenant at the energy city through the establishment of a 100ha Common User Supply Base (CUSB) business incubator, which may be expanded by 50ha if needed.
OSC will work with Saudi Aramco to CUSB, which will support the oil and gas industry in Saudi Arabia and spur business opportunities for small-and medium-sized enterprises (SMEs) in the energy sector.
OSC plans to invest around $450m (SAR1.7bn) into the Spark project over the next two years, which is expected to support Spark's goal to localise more than 300 new industrial and service facilities.
CUSB will provide industrial buildings of various sizes to host companies and supply them with integrated services such as logistics, technical engineering, and business support.
Commenting on the agreement, Saudi Aramco's president and chief executive officer, 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.
“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.”
Director and general manager of corporate affairs at OSC, Iqbal Mohammad Abdein, added: “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 localisation plans by both increasing local procurement and value added manufacturing activities, as well as increasing the employment of skilled Saudi nationals."