Saudi Aramco signs deals worth US$27.5 billion with suppliers
Published by Aimee Knight,
Editorial Assistant
Oilfield Technology,
The annual flagship event supports the In Kingdom Total Value Add (IKTVA) program, Saudi Aramco’s localisation strategy to build a world-class supply chain and establish Saudi Arabia as a globally-competitive energy hub in line with Vision 2030, the Kingdom’s economic diversification program. Held November 26-27 under the patronage of HRH Prince Saud bin Nayef bin Abdulaziz Al Saud, governor of the Eastern Province, the Forum offered presentations, workshops and panels on best practices in navigating such areas as regulatory requirements, financing, R&D and talent development. In addition to the signing of MoUs and commercial collaborations, an awards programme was held to celebrate the program’s success stories for the year (awarded companies are listed below).
IKTVA participation is mandatory for every Saudi Aramco supplier, as the programme aims to attain 70% local content, create thousands of jobs and export 30% of local energy goods and services output by 2021. Partnerships support local content by contributing to job creation, technology transfer, training and development, and R&D. By 2030, the programme aims to establish 30 training centres helping prepare 360 000 highly skilled graduates for jobs of the future.
In return, companies with a local presence can take advantage of more than SAR 1.7 trillion being spent by Saudi Aramco on localisation opportunities over the next decade. “Our 2018 IKTVA Forum marked the half-way point to our local-content goals, and the event has underlined the win-win nature of our programme with many of our international suppliers increasing their market share or moving their manufacturing to the Kingdom,” said Saudi Aramco President & CEO Amin H. Nasser. “Over the two-day event, we signed US$27.5 billion in a total of 31 commercial collaborations. Companies that have invested here are ideally positioned to benefit further with our signing last month of SAR 125 billion in business at the Future Investment Initiative in Riyadh, much of which will have a direct impact on IKTVA. As of now, 51% of each riyal Saudi Aramco earmarks for materials and services is spent locally.”
The annual IKTVA Forum & Exhibition is the leading global energy supply-chain event, driving additional domestic value and maximising sustainable, long-term growth for the Kingdom’s changing economy.
Read the article online at: https://www.oilfieldtechnology.com/special-reports/26112018/saudi-aramco-signs-deals-worth-us275-billion-with-suppliers/
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