Arab
News, Wensday, Nov 23, 2022 | Rabi Al Thani 28, 1444
Saudi Aramco signs 59 agreements under iktva program to create 5,000 jobs
RIYADH: Saudi Aramco, one of the biggest energy producers in the world, has
signed 59 corporate procurement agreements under its ‘In Kingdom Total Value
Add’ program with 51 local and global manufacturers.
These deals, valued at $11 billion, have the potential to create 5,000 jobs in
the Kingdom.
The so-called iktva project was launched by Saudi Aramco in 2015 to baseline,
measure and support increased levels of localization in the Kingdom, along with
establishing a world-class supply chain, according to its website.
A press release said these 59 agreements cover multiple strategic commodities,
including drilling chemicals, wellhead, switchgear, vibration monitoring
systems, pipes, compressors, structure steel, fittings and flanges, and
air-cooled heat exchangers.
Some of the noted firms that signed agreements with Aramco include Baker Hughes,
Cameron Al Rushaid, Halliburton, SLB, and TechnipFMC.
“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,” said Mohammad A. Al-Shammary, Aramco vice president
of Procurement and Supply Chain Management.
The press release further noted that these agreements are expected to reinforce
Aramco’s supply chain and result in the development of materials manufacturing
facilities in Saudi Arabia.
“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. We are also extensively building commercial ecosystems
globally by partnering with some of the world’s top energy, logistics, and
manufacturing companies,” said Ahmad A Al-Sa’adi, Aramco senior vice president
of Technical Services.
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.
Earlier in September, while speaking at the Local Content Forum in Riyadh, Majid
Al-Mohammed, supervisor of iktva’s Action Plan and Support, said that the
program is an extension of Saudi Aramco’s efforts to localize and develop local
content.
“The iktva program has been gradual in several stages; starting with supporting
merchants and suppliers of goods, then supporting service providers and moving
to support manufacturers in the Kingdom,” said Al-Mohammed.