Saudi Aramco signs 31 commercial deals worth $27.5 bln with suppliers

Saudi Aramco has signed 31 commercial deals, worth $27.5 billion, at its fourth annual In-Kingdom Total Value Add (IKTVA) program, the state-run oil giant said in a statement on Monday.

"Companies that have invested here are ideally positioned to benefit further with our signing last month of SAR 125 billion in business at the Future Investment Initiative in Riyadh, much of which will have a direct impact on IKTVA. As of now, 51 percent of each riyal Saudi Aramco earmarks for materials and services is spent locally,” said Amin H. Nasser, president & chief executive, Saudi Aramco.

IKTVA participation is mandatory for every Saudi Aramco supplier, as the program aims to attain 70 percent local content, create thousands of jobs and export 30 percent of local energy goods and services output by 2021. The program aims to establish 30 training centers helping prepare 360,000 highly skilled graduates for jobs of the future by 2030.

In return, companies with a local presence can take advantage of more than SAR 1.7 trillion being spent by Saudi Aramco on localization opportunities over the next decade, the statement added.

More than 1,000 international and domestic suppliers attended the forum which aims to build a world-class supply chain and establish Saudi Arabia as a globally-competitive energy hub in line with Vision 2030 program.

The MoUs and commercial collaborations included the following companies and entities:

1) Offshore Oil Engineering Co. Ltd.

2) Sapura Fabrication Sdn

3) Consortium of Lamprell Energy and Boskalis Westminster

4) Consortium of Technip Italy and Malaysia Marine & Heavy Engineering

5) National Petroleum Construction Company

6) Baker Hughes, a GE Company

7) Schlumberger

8) Siemens

9) Saudi Arabia Industrial Development Fund

10) PowerChina

11) ABB

12) Leading National Academy, Technical & Vocational Training Corp, Human Resource Development Fund, and the Ministry of Labor and Social Development

13) Gulf Chemicals & Industries Oils Company

14) Yokogawa

15) Schneider Electric Company

16) Honeywell

17) Emerson

18) Saudi Mechanical Industries

19) Weir Arabian Metal/Weir Group

20) TechnipFMC

21) Ensco

22) Shelf Drilling Group

23) Noble

24) Larsen & Toubro

25) Gulf Heavy Industries

26) Al-Khonaini International Company

27) Hadi Hammam Al Hammam Holding Company

28) Leanardo Helicoptors & Lamar Holding Company

29) Airbus & Al-Qahtani Aviation

30) Leading National Academy (LNA) & National Power Academy (NPA)