Saudi oil giant Aramco on February 27 advanced its strategic localization programme by signing 40 corporate procurement agreements worth $6 billion with suppliers in the Kingdom of Saudi Arabia.
The agreements aim to strengthen Aramco’s domestic supply chain ecosystem, contributing to the company’s resilience and its reliability and ability to meet the evolving needs of its customers.
They also provide suppliers with long-term visibility of demand, enabling them to capture future growth and advance localization efforts, it stated.
One of the world’s leading integrated energy and chemicals companies, Aramco said these will also contribute to achieving the objectives of its flagship initiative - in-Kingdom Total Value Add program (iktva) - that aims to drive the growth of a vibrant economy, and create new opportunities for Saudi nationals.
On the procurement deals, Wail Al Jaafari, Aramco Executive Vice President of Technical Services, 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."
"These agreements move us towards 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," stated Al Jaafari.
Covering a variety of sectors, the new corporate procurement agreements span the supply of a range of products comprising strategic commodities, such as instrumentation, and electrical and drilling equipment.
In addition, Aramco has signed two MoUs with strategic partners to collaborate on localization and supply chain development.
