Dhahran, Saudi Arabia — Energy giant Saudi Aramco Tuesday announced that it has signed 40 corporate purchase agreements worth $6 billion with suppliers in Saudi Arabia under its localization program.
The new purchase agreements cover companies in multiple sectors and include the supply of a variety of products, including strategic goods, such as electrical equipment and drilling equipment, Aramco said in a statement.
In the same context, Saudi Aramco signed two memorandums of understanding with strategic partners to cooperate in the field of localization and supply chain development.
The agreements, announced at a signing ceremony hosted by Saudi Aramco at the Dhahran Exhibition Center, aim to strengthen Saudi Aramco’s local supply chain ecosystem, contributing to the company’s resilience, reliability and ability to meet the growing needs of its customers, Aramco said in a statement.
It also aims to provide suppliers with long-term insight into demand that enables them to achieve future growth and enhance localization efforts, the statement said.
The agreements will contribute to the objectives of Saudi Aramco’s program to enhance the total value added of the Kingdom’s supply sector (iktva) as a pioneering initiative aimed at stimulating the growth of a thriving economy and creating more new jobs for Saudis.
Wael Aljafari, Executive Vice President of Technical Services at Saudi Aramco, said the signing of 40 new agreements is expected to strengthen the In-Country Value Chain, strengthen the supply ecosystem that Saudi Aramco is working to help build, and stimulate its efforts to reach a more prosperous, diversified and resilient supply chain, helping to ensure the continuity of the company’s business.
These agreements come under Saudi Aramco’s program to enhance the total value added of the Kingdom’s supply sector (iktva).