Saudi Aramco signs 59 procurement agreements under Iktva

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The agreements were signed with 51 local and global manufacturers.
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  • Valued at $11 bn, the agreements were signed with 51 local and global manufacturers, with potential to create 5,000 new jobs in the kingdom over the next decade.
  • They cover multiple strategic commodities, such as drilling chemicals, wellheads, switchgears, vibration monitoring systems, pipes and compressors.

Dhahran, Saudi Arabia– Saudi Aramco Tuesday signed 59 corporate procurement agreements (CPAs) valued at $11 billion with 51 local and global manufacturers, with potential to create 5,000 new jobs in the kingdom over the next decade.

The agreements are expected to reinforce Aramco’s supply chain and result in the development of materials manufacturing facilities in the Kingdom.

The 59 CPAs cover multiple strategic commodities, such as drilling chemicals, wellheads, switchgears, vibration monitoring systems, pipes, compressors, structure steel, fittings and flanges, and air-cooled heat exchangers.

Under their CPA agreements, supplier partners agree to establish local facilities, transfer technology, perform local research and development, and develop the local workforce and supply chain, while gaining preferred status with Aramco, Aramco joint ventures and affiliates.

Among the companies signing the agreements were Baker Hughes, Cameron Al Rushaid, Halliburton, SLB, and TechnipFMC. The CPAs fall under a strategic pillar of the Aramco in-Kingdom Total Value Add program (iktva), wherein they are used to establish long-term agreements and commitments with supplier partners.

Since the launch of the CPA pillar, Aramco has entered into over 100 CPAs, driving localization in critical commodities such as drill bits, downhole, valves, pressure vessels, and process automation systems. In addition, some CPA holders now export materials globally, Aramco said.

Aramco launched iktva in 2015 with the goal of establishing a world-class supply chain in Saudi Arabia. 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, the energy giant said.

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