The Saudi Arabian Oil Company, or Saudi Aramco, has started a collaboration with Indian conglomerate Larsen & Toubro (L&T) for development of manufacturing capabilities of Saudi Arabia, the companies has announced.
Aramco has signed an agreement with L&T to establish the region’s first Heavy Wall Pressure Vessels facility at the kingdom’s Jubail Industrial City, it said.
This newly signed MoU is said to be in line with the 22 MoUs of Aramco’s Namaat program which was launched in September 2021.
The ultimate goal of the Namaat program is said to be to build a world-class energy services ecosystem in the kingdom.
L&T is about to start construction of the new facility, with production expected to start by September 2022.
The facility, which covers 120,000 square meters of area, reportedly aims to create crucial equipment for many industries, such as power, oil, and gas.
Aramco’s Senior Vice-President of Technical Services, Ahmed Saadi, said, “This manufacturing facility, once completed, will provide a large number of skilled job opportunities for Saudi youth, localize the ‘know-how’ of heavy wall vessels in the kingdom, and deploy the latest manufacturing technologies to serve the kingdom and MENA region”
He added: “We expect this facility to help Aramco and others in the kingdom to increase localization and optimize capital cost.”