Aramco Signs 59 Deals Worth $11B
Saudi Aramco revealed Tuesday that it has signed 59 corporate procurement agreements (CPAs), worth $11 billion, with 51 local and global manufacturers.
The deals have the potential to create 5,000 new jobs in the Kingdom of Saudi Arabia over the next decade and are expected to reinforce Aramco’s supply chain and result in the development of materials manufacturing facilities in the Kingdom, Aramco outlined.
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, Aramco noted. Although Aramco did not publish a full list of the companies it made the CPAs with, it highlighted that it had struck deals with Baker Hughes, Cameron Al Rushaid, Halliburton, SLB, and TechnipFMC.
Aramco outlined that the CPAs were signed under the In-Kingdom Total Value Add (iktva) program, which it launched 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, according to Aramco.
“Our significant investments in a network of accomplished local suppliers strengthens Aramco’s resilience, ensuring that we remain the world’s most reliable energy company,” Ahmad A. Al-Sa’adi, Aramco’s Senior Vice President of Technical Services, said in a company statement.
“We are also extensively building commercial ecosystems globally by partnering with some of the world’s top energy, logistics, and manufacturing companies,” he added.
Mohammad A. Al-Shammary, Aramco’s Vice President of Procurement and Supply Chain Management, said, “the CPA holders will be our future strategic manufacturing partners for these commodities, and the agreements further broaden our localization infrastructure across the Aramco network”.
Back in January, Aramco announced the signing of 50 Memoranda of Understanding (MoUs) at the iktva forum and exhibition. Although a full list of deals was, again, not revealed by Aramco, the company highlighted that major signings included Schlumberger, Cameron/TechnipFMC/Baker Hughes, and Honeywell.
During the same month, Aramco revealed that it had signed 10 agreements during the Saudi-Korean Investment Forum. The deals spanned the areas of technology, manufacturing and finance and included Korea Electric Power Corporation, S-Oil, and the Export-Import Bank of Korea, Aramco highlighted.
To contact the author, email andreas.exarheas@rigzone.com
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Falcon Oil Declares Commercial Flow Test Results for Shenandoah Well
- Macquarie Strategists Expect Brent Oil Price to Grind Higher
- Japan Failing to Meet Corporate Demand for Clean Power: Amazon
- Pennsylvania County Joins List of Local Govts Suing Big Oil over Climate
- UK Oil Regulator Publishes New Emissions Reduction Plan
- PetroChina Posts Higher Annual Profit on Higher Production
- US, SKorea Launch Task Force to Stop Illicit Refined Oil Flows into NKorea
- McDermott Settles Reficar Dispute
- Russian Navy Enters Warship-Crowded Red Sea Amid Houthi Attacks
- USA Commercial Crude Oil Inventories Increase
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Oil Demand Outpaces Expectations, Testing Calculus on Peak Crude
- House Passes Protecting American Energy Production Act
- TotalEnergies Restarts Production in Denmark's Biggest Gas Field
- Republican Lawmakers Say IEA Has Abandoned Energy Security Mission
- USA Oil and Gas Job Figures Jump
- Blockchain Demands Attention in Oil and Gas
- Houthis Warn Saudi Arabia of Retaliation If It Backs USA Attacks
- Macquarie Sees USA Oil Production Exiting 2024 at 14MM Barrels Per Day
- Summer Pump Prices Set to Hit $4 a Gallon Just as Americans Hit the Road
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Equinor Makes Discovery in North Sea
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension