Aramco signs 59 new agreements worth SAR 41.3 bln under iktva program

In a statement, of which Argaam picked a copy, the oil giant said the CPAs fall under a strategic pillar of the Aramco in-Kingdom Total Value Add program (iktva). Through the latter, the deals will be used to establish long-term agreements and commitments with supplier partners.

The agreements cover multiple strategic commodities. This includes drilling chemicals, wellheads, switchgears, vibration monitoring systems, pipes, compressors, structure steel, fittings and flanges, as well as air-cooled heat exchangers.

Among the companies signing the agreements were Baker Hughes, Cameron Al Rushaid, Halliburton, SLB and TechnipFMC.

The deals aim to reinforce Aramco’s robust supply chain and develop materials manufacturing facilities in the Kingdom. They will contribute to the creation of 5,000 new jobs locally over the next decade.

Since the launch of the CPA pillar, Aramco has entered into over 100 CPAs. These strategic agreements have driven localization in critical commodities such as drill bits, downhole, valves, pressure vessels and process automation systems. In addition, some CPA holders now export materials globally, while providing Aramco with the capacity to embark on the most robust project portfolio in its history.

Aramco launched iktva in 2015, with the goal of establishing a world-class supply chain in Saudi Arabia. Since its inception, the program has contributed more than SAR 487.5 billion to the Kingdom’s gross domestic product (GDP), while creating over 100,000 supply chain jobs for Saudis.