RIYADH: 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.