RIYADH: Saudi Aramco, one of the world’s largest energy producers, has signed 59 corporate supply agreements under its “In Kingdom Total Value Add” program with 51 local and global manufacturers.
These agreements, 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 benchmark, measure and support increased levels of localization in the Kingdom, as well as establish a world-class supply chain, according to its website.
A press release indicates that these 59 agreements cover several strategic products, including drilling chemicals, wellhead, switchgear, vibration monitoring systems, pipes, compressors, structural steel , fittings and flanges and air-cooled heat exchangers.
Some of the rated companies that have signed deals with Aramco include Baker Hughes, Cameron Al Rushaid, Halliburton, SLB and TechnipFMC.
“CPA holders will be our future strategic manufacturing partners for these products, and the agreements will further expand our localization infrastructure across the Aramco network,” said Mohammad A. Al-Shammary, Aramco Vice President of Purchasing Management. and the supply chain.
The press release further noted that these agreements are expected to strengthen Aramco’s supply chain and lead to 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 most reliable energy company in the world. We are also intensively building business ecosystems globally by partnering with some of the world’s largest energy, logistics and manufacturing companies,” said Ahmad A Al-Sa’adi, Senior Vice President of Aramco 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, iktva’s action plan and support supervisor, said the program was an extension of the efforts of Saudi Aramco to localize and develop local content.
“The iktva program has been progressive in several stages; starting with supporting merchants and suppliers of goods, then supporting service providers and moving on to manufacturers in the Kingdom,” Al-Mohammed said.