Saudi Aramco Bolsters Localization Efforts with $6 bn Procurement Agreements

By Editor


In a significant move aimed at advancing its strategic localization program, Saudi Aramco, a global leader in integrated energy and chemicals, has inked 40 corporate procurement agreements valued at $6 billion with suppliers based in the Kingdom of Saudi Arabia.

The agreements mark a substantial step forward in strengthening Aramco’s domestic supply chain ecosystem, reinforcing the company’s resilience, reliability, and adaptability to meet the changing demands of its clientele. Moreover, these contracts offer suppliers a clear line of sight into future demand, empowering them to seize forthcoming growth opportunities and further the localization agenda.

Notably, the procurement pacts align with the objectives of Aramco’s In-Kingdom Total Value Add (iktva) program, the company’s flagship initiative aimed at fostering a robust economy and generating new avenues for employment among Saudi nationals.

Wail Al Jaafari, Aramco’s Executive Vice President of Technical Services, expressed optimism regarding the impact of these agreements, stating, “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. These agreements move us towards a more prosperous, diverse and resilient supply chain, which will help ensure business continuity.”

The agreements encompass a diverse array of sectors, spanning the supply of critical commodities such as instrumentation, electrical equipment, and drilling apparatus. Additionally, Saudi Aramco sealed two Memoranda of Understanding with strategic partners, laying the groundwork for collaborative efforts in localization and supply chain development.

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