New chemical R&D capabilities for Saudi oil and gas

Saudi Arabia

Mohamed Abu Bakr, general manager of Saudi Multichem, talks to The Energy Year about the much-anticipated launch of the company’s new R&D facility and developing patented chemical solutions to address long-standing oil and gas production challenges. Saudi Multichem is an oilfield chemicals manufacturing company.

Can you start by introducing Saudi Multichem and providing an overview of the company’s footprint in Saudi Arabia?
Saudi Multichem is a specialised chemical company within the Al Saidi Group that operates within the oil and gas sector. While the group has a broader scope and offers services, chemicals and trading, Saudi Multichem focuses exclusively on developing chemical solutions for oil and gas applications.
We have been in operation for about 20 years, and over the past decade, our work with Aramco has been particularly intense. Currently, we hold many contracts for the supply of drilling, cementing and Oil & water treatment chemicals. Our expertise also covers areas such as corrosion inhibitors, scale inhibitors and anti-scaling solutions.
One of our busiest divisions is water treatment. Even during downturns in the oil and gas industry, the business remains stable. We account for a reasonable market share of Aramco’s business in this segment. Over the next two years, we expect to increase it by 10%, and within five years, we aim to increase it by 30%.

Can you tell us about your new R&D centre?
We are expanding our focus on research and development, and we have established one of the most advanced R&D centres within Aramco’s ecosystem. It will cover around 80% of the technical aspects of our work. Our vision is to operate as a third-party laboratory and provide high-quality testing services to Aramco and international companies.
At the moment, many lab tests for chemical solutions are conducted within Aramco’s R&D facilities, which have some of the most advanced capabilities in the region. With our new centre, we will take a major step forward and conduct in-house testing before delivering solutions to clients.
We want to set precise composition and performance benchmarks for our chemicals before delivering them to customers. Instead of waiting for clients to test our products and provide feedback on their efficiency, we will provide them with detailed performance specifications so they understand the quality and effectiveness of our solutions up front.
We are working towards ISO certification for the R&D facility and will invite Aramco to conduct audits to ensure that our operations meet their high standards. Our goal is to make this centre a reference for chemical innovation and reliability in the region.

Who are your main clients within the Aramco ecosystem?
Our main clients are companies such as international oilfield service providers. We supply them with chemical products for their operations. For example, one of the companies handles downhole injections, which require specialised acid recipes containing speciality additives. We manufacture them with ingredients that we source locally.
We have the most experience in chemicals for oil treatment and water treatment, but another major area for us is EOR, where we have developed patented solutions. I hold two patents for scale inhibitors and descaling applications that address long-standing challenges that Aramco has had in its operations.
The market for these solutions is large in Saudi Arabia. At Saudi Multichem, we do more than just supply chemicals – we collaborate with clients to understand their challenges and develop tailored solutions. Our approach is to work as an extension of their teams, ensuring that we address their needs and deliver long-term value.

What are some of the chemical management services you offer?
It is challenging for customers to manage chemicals, engineering services and software solutions from multiple suppliers. Many prefer not to source chemicals from one provider, chemical management systems from another and software control from a third. Instead, they seek an integrated solution that streamlines operations and enhances efficiency.
At Saudi Multichem, we provide end-to-end solutions that cover chemical supply, engineering and operational support. This approach has been a cornerstone of our strategy over the past five years, and it has helped customers achieve better cost efficiency and service availability.
Another key advantage is risk management. When different providers handle various aspects of chemical management systems, diagnosing issues becomes complex. If a problem arises, it’s difficult to determine whether it stems from the chemicals, the service or the software. By consolidating all these elements, we eliminate that uncertainty, ensuring accountability and faster problem resolution. That is another reason why our clients prefer our integrated services.

What do you envision for the future of Saudi Multichem?
Our main objective is to strengthen our market position. The IKTVA [In-Kingdom Total Value Add] programme will help, as increasing the participation of domestic companies in key industries is a priority for Saudi Arabia. Our market share is already strong, and our focus for the next phase is to grow our share of Aramco’s business.
From a strategic standpoint, having a diversified portfolio is essential. It allows us to engage with Aramco across multiple areas and build long-term partnerships. Our goal is to increase our revenue by 50% by 2026. Achieving this target will require increasing our business with Aramco and with service companies, improving our export capabilities and continuing to deliver high-quality solutions to the industry.

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