RIYADH: Saudi Aramco, one of the biggest energy producers in the world, has signed 59 corporate procurement agreements under its ‘In Kingdom Total Value Add’ program with 51 local and global manufacturers.
These deals, valued at $11 billion, have the potential to create 5,000 jobs in the Kingdom.
The so-called iktva project was launched by Saudi Aramco in 2015 to baseline, measure and support increased levels of localization in the Kingdom, along with establishing a world-class supply chain, according to its website.
A press release said these 59 agreements cover multiple strategic commodities, including drilling chemicals, wellhead, switchgear, vibration monitoring systems, pipes, compressors, structure steel, fittings and flanges, and air-cooled heat exchangers.
Some of the noted firms that signed agreements with Aramco include Baker Hughes, Cameron Al Rushaid, Halliburton, SLB, and TechnipFMC.
“The CPA holders will be our future strategic manufacturing partners for these commodities, and the agreements further broaden our localization infrastructure across the Aramco network,” said Mohammad A. Al-Shammary, Aramco vice president of Procurement and Supply Chain Management.
The press release further noted that these agreements are expected to reinforce Aramco’s supply chain and result in the development of materials manufacturing facilities in Saudi Arabia.
“Our significant investments in a network of accomplished local suppliers strengthens Aramco’s resilience, ensuring that we remain the world’s most reliable energy company. We are also extensively building commercial ecosystems globally by partnering with some of the world’s top energy, logistics, and manufacturing companies,” said Ahmad A Al-Sa’adi, Aramco senior vice president of Technical Services.
Since its launch, the iktva program has contributed more than $130 billion to the Kingdom’s gross domestic product, while creating more than 100,000 supply chain jobs for Saudis.
Earlier in September, while speaking at the Local Content Forum in Riyadh, Majid Al-Mohammed, supervisor of iktva’s Action Plan and Support, said that the program is an extension of Saudi Aramco’s efforts to localize and develop local content.
“The iktva program has been gradual in several stages; starting with supporting merchants and suppliers of goods, then supporting service providers and moving to support manufacturers in the Kingdom,” said Al-Mohammed.