Arab News, Wed, Feb 28, 2024 | Shaban 18, 1445
Aramco signs procurement agreements worth $6bn to enhance local supply chain
Saudi Arabia:
Saudi Aramco’s domestic supply chain is poised for further improvement as it
signed procurement agreements worth $6 billion with suppliers in the Kingdom.
According to a press statement, these 40
procurement agreements were inked as a part of the company’s strategic
localization program and are expected to strengthen the firm’s supply chain
ecosystem and contribute to the development of the energy services sector in
Saudi Arabia.
The deals will also provide suppliers with
long-term demand visibility, enabling them to capture future growth and advance
localization efforts.
Wail Al-Jaafari, executive vice president of
technical services at Saudi Aramco, said: “The 40 new agreements signed today
are expected to contribute to the domestic value chain and further enhance the
ecosystem that Aramco is helping to build.”
Moreover, these procurement agreements will also
contribute to achieving the objectives of Aramco’s iktva program, an initiative
to drive the growth of a vibrant economy in the Kingdom and create new
opportunities for Saudi nationals.
These new corporate deals span the supply of a
range of products comprising strategic commodities, such as instrumentation and
electrical and drilling equipment.
“These agreements move us toward a more
prosperous, diverse and resilient supply chain, which will help ensure business
continuity. They also represent a key milestone on our iktva journey and provide
our partners an opportunity to benefit from a dynamic and increasingly
diversified operating environment,” added Al-Jaafari.
Additionally, Saudi Aramco signed two memorandum
of understanding with its strategic partners to collaborate on localization and
supply chain development.
Earlier in February, speaking at the International
Petroleum Technology Conference in Dhahran, Amin Nasser, CEO of Saudi Aramco,
said that the company is very active in its localization efforts.
“We hired more than 5,000 people, mostly Saudis,
but also from 60 nationalities,” said Nasser.
He also added that Aramco has the full capability
to grow in any sector to create profitable companies.
In January, a report released by strategic
consulting firm Brand Finance revealed that Saudi Aramco has retained its
position as the most valuable company in the Middle East region, with a value
amounting to $41.6 billion.