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Aramco pens 59 agreements worth $11bn under iktva programme

Aramco pens 59 agreements worth $11bn under iktva programme
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Riyadh – Mubasher: Saudi Arabian Oil Company (Saudi Aramco) has inked 59 corporate procurement agreements (CPAs) at an aggregated value of $11 billion in line with the In-Kingdom Total Value Add (iktva) programme.

The deals will provide 5,000 new job opportunities in Saudi Arabia over the coming10 years, according to a press release. They are also expected to boost Aramco’s supply chain and develop the materials manufacturing facilities in the Kingdom

The CPAs cover different strategic commodities, including drilling chemicals, wellheads, switchgears, vibration monitoring systems, pipes, compressors, structure steel, fittings and flanges, as well as air-cooled heat exchangers.

Under the agreements, supplier partners will set up local facilities, transfer technology, carry out research and development, and bolster the workforce and supply chain while strengthening their position with Aramco, its joint ventures, and affiliates.

Aramco signed the deals with 51 local and global manufacturers that include Baker Hughes, Cameron Al Rushaid, Halliburton, SLB, and TechnipFMC.

Ahmad Al Sa’adi, Senior Vice President of Technical Services at Aramco, noted: “We are also extensively building commercial ecosystems globally by partnering with some of the world’s top energy, logistics, and manufacturing companies.”

Mohammad Al Shammary, Vice President of Procurement and Supply Chain Management at Aramco, said: “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.”

Under the CPA pillar, the Saudi oil giant has entered into more than 100 agreements which had driven localisation in critical commodities like drill bits, downhole, valves, pressure vessels, and process automation systems.

Aramco launched iktva in 2015 to establish a world-class supply chain in the Kingdom. The programme focused on developing the Saudi workforce, increasing exports, and more.

Since its inception, iktva has contributed over $130 billion to Saudi Arabia’s gross domestic product (GDP), in addition to creating more than 100,000 supply chain jobs for Saudi people. 

In January 2022, Aramco penned 50 memoranda of understanding (MoU) during the sixth edition of the iktva Forum and Exhibition.

Earlier this month, the Tadawul-listed firm announced plans to invest $7 billion in South Korea for a petrochemical project.

During the first nine months (9M) of 2022, the Saudi company generated SAR 488.78 billion net profits after Zakat and tax, an annual hike of 67.97% from SAR 291 billion.