SINCE its inception in 2001, Specialized Oil and Gas Engineering (SOGEC) has emerged as a pivotal player in the oil and gas sector, marked by rapid growth and diversification. The company’s trajectory has been defined by landmark achievements, including its designation as an authorized manufacturer for Saudi Aramco by 2010 and a robust expansion into solar energy solutions by 2012.
In an interview with OGN energy magazine, Walid Rajab, General Manager SOGEC & IKK Energy, says:
“The company has continued its evolution with a major facility enlargement in 2018 and further diversified its offerings in 2020 to include energy storage systems an EV chargers.”
These strategic expansions underscore SOGEC’s commitment to integrating cutting-edge technologies and meeting the evolving needs of the industry. Looking ahead, SOGEC is focused on enhancing its production capabilities and leveraging emerging technologies to drive progress within Saudi Arabia’s energy sector.
Their ongoing projects and innovations reflect a dedication to sustainability and local value addition, aligning with the Kingdom’s Vision 2030 goals.
Below are excerpts from the interview:
Abdulaziz: As a leading supplier to the oil and gas industry, what are the highlights of your impressive journey over the years?
Walid Rajab: Established in 2001, SOGEC experienced exponential revenue growth by 2007, driven by the introduction of mega projects from SWCC and RC.
By 2010, the company achieved approval as an authorized manufacturer for Saudi Aramco, further solidifying its industry standing.
In 2012, SOGEC expanded its portfolio by integrating solar energy solutions into its oil and gas services.
This progressive expansion continued in 2018 with the enlargement of its production facility to 4,000 sq m, complemented by a
2,500-sq-m warehouse. The company further diversified in 2020 by launching a dedicated division for energy storage systems, EV chargers, and solar system solutions, catering to both commercial and industrial applications.
Abdulaziz: What specialized products (and services) do you offer the oil and gas, petrochemicals, industries? State the distinguishing elements.
Walid Rajab: We offer a range of specialized products and services tailored for the oil, gas, and petrochemical industries, including cathodic protection systems (CP), corrosion control and monitoring, corrosion coupon retrieval, vapor corrosion inhibitors (VCI), Non-destructive testing (NDT conventional and advanced methods, heat treatment (HT), and inspection.
Abdulaziz: Please share new developments within the company.
Walid Rajab: We are currently remodeling our production facility layout to incorporate modern storage and fabrication concepts, and we are introducing new tools and equipment. Our production increased by 50 percent in 2024 compared to 2023, and we aim to double our production capacity by 2025.
Abdulaziz: Please share any new developments Sogec’s manufacturing facilities in the Kingdom, including new capacities, lines, production, products, services, manpower, etc?
Walid Rajab: SOGEC produces all cathodic protection materials, including anodes, junction boxes, transformer rectifiers, and more. We have the largest production capacity for these products in Saudi Arabia and plan to expand it in the coming years.
Abdulaziz: Do you have any more facilities planned in the Kingdom?
Walid Rajab: Not at the moment, as one factory in the Kingdom is sufficient for this type of business. However, we are definitely looking for opportunities abroad.
Abdulaziz: How is SOGEC’S emerging technologies and processes contributing to the advancement of the industry in KSA?
Walid Rajab: In the NDT business, we were the first to comply with Saudi Aramco’s new requirements by transitioning from conventional methods to advanced techniques through significant investments in equipment and qualified personnel. As for CP, our R&D team is working on a product set to be launched before December 2024. This product will revolutionize corrosion monitoring, and our aim is to market it internationally rather than just locally. Additionally, SOGEC consistently conducts pilot projects with clients such as Sabic and Aramco to test new technologies and equipment before establishing standards.
Abdulaziz: What’s the most exciting project you have worked on in the Kingdom to date?
Walid Rajab: The cathodic protection survey and design for the Master Gas System Expansion, Phase 3, is a prime example of an exciting project. The project’s main objective is to expand the Master Gas System (MGS) capacity based on the sales gas forecast from December 16, 2021, which projects a capacity of 17.48 BSCFD by 2030, to:
• Displace liquid hydrocarbon fuel at existing power and desalination plants and major industrial customers around the Kingdom.
• Supply gas to new power plants in the Western region.
• Extend the MGS to the southwestern region.
The liquid displacement program will efficiently meet the Kingdom’s energy needs and support both the Kingdom’s and Saudi Aramco’s carbon emissions reduction strategies.
The facilities to be developed under BI-10-14044 consists of three major packages (main pipelines, compressor stations, and industrial clusters) that need to be developed in parallel to achieve the overall business objective.
Identifiers (suffixes) have been added where appropriate to clarify the scope between the three major packages, support scope development during subsequent project stages, and facilitate cross-referencing between the major packages.
SOGEC was awarded the survey and design of Packages A and C, which include approximately 3,500 km of pipelines across Saudi Arabia. The main challenges were managing the time schedule, manpower, and equipment preparation, especially since 1,500 km of pipelines were to be installed in greenfield areas with limited road access. Additionally, the project had a tight deadline. The project was successfully completed as a proposal, and numerous technical meetings with the owner’s technical team were held to provide justifications and implementation details according to our design. It is currently in the construction phase and is expected to be commissioned in 2028.
Abdulaziz: Share an instance or two where you specified solutions to the client’s satisfaction ?
Walid Rajab: During the inspection of one of our end client’s heat exchangers, the inspection team discovered significant internal corrosion on the heat exchanger’s components. As this issue is critical to the operation of the exchanger, we were asked to design a cathodic protection system for the first time for such equipment, as the manufacturer had not included such a system in their proposal. Since the end client did not have a specific cathodic protection standard for this equipment,
SOGEC proposed a system that adhered to international standards and utilized stock materials available in the local market. We completed the design, materials sourcing, and installation of the CP system within one week, which aligned with the client’s schedule and shutdown requirements.
Abdulaziz: How much has SOGEC achieved as part of its In-Kingdom Total Value Add (iktva) plan?
Walid Rajab: SOGEC embarked on a five-year IKTVA journey in 2016 with the aim of increasing local value addition. Through strategic partnerships, technology transfer, and robust localization programs, we have consistently exceeded our targets. By 2022, we achieved an impressive 47 percent IKTVA, generating additional in revenue and creating many new jobs.
Our focus on developing local supply chains and upskilling our workforce has been instrumental in this success. Building on this momentum, we are committed to reaching our new IKTVA target by aligning with the Kingdom’s Vision 2030 and further strengthening our contribution to the national economy.
Abdulaziz: How is SOGEC partnering with Aramco to help boost the Kingdom’s energy sector?
Walid Rajab: SOGEC is proud to be a key contributor to Saudi Arabia’s energy landscape through our involvement in the Jafurah gas field and Master Gas Pipeline, Phase 3, projects. Our partnership with Aramco has been pivotal in achieving these objectives. By delivering these mega-projects ahead of schedule and within budget,
SOGEC is directly supporting Saudi Arabia’s Vision 2030 by diversifying its energy mix, creating thousands of high-quality jobs, and driving economic growth in the region.
SOGEC is committed to building a longlasting and mutually beneficial partnership with Aramco. By leveraging our combined strengths and expertise, we aim to deliver exceptional value to the Kingdom and contribute to its sustainable economic growth.
Abdulaziz: How many local workers do you have at the KSA facilities and their proportion compared to overall company workforce?
Walid Rajab: We currently have 125 local workers in various roles at our facilities, distributed across departments such as production, QC, safety, sales, operations, procurement, Finance, IT, HR, etc. The localization percentage is 25 percent.
Abdulaziz: What is SOGEC doing to develop the capabilities of Saudi engineers and technicians? Can you share success stories of your local workforce and how Sogec company culture contributed to that success?
Walid Rajab: SOGEC has been actively collaborating with governmental and semi-governmental entities to provide training and workshops for Saudi engineers and technicians. Additionally, we have established a continuous internal training programme to ensure that our workforce remains distinguished in the market.
One of the best success stories at SOGEC is the loyalty of our local workforce, as evidenced by our high retention rates. For example, I recently attended a farewell party for a Saudi employee who retired after 25 years with SOGEC. Another example of our success with the local workforce is that even if they occasionally leave, they often return to us, and we welcome them back with open arms.
Abdulaziz: What measures is SOGEC taking to achieve sustainability?
Walid Rajab: Regarding sustainability, we have established a new division focused on green energy, solar systems, and EV chargers, which aims to help preserve our planet for future generations. Additionally, we are implementing other initiatives, such as the circular economy, to ensure we stay on track with our sustainability goals.
Abdulaziz: As an industry leader, what is your vision for the company?
Walid Rajab: I believe SOGEC is currently the market leader in the services it provides, and it is time to think bigger by expanding into new markets regionally and internationally to become the world leader in these services, especially since the government is offering all the necessary support to facilitate this direction. Regarding the local market in Saudi Arabia, we will continue to uphold the high reputation we have for customer service and ensuring our customers remain satisfied.