Saudi Arabia’s national petroleum and natural gas company Aramco has signed 40 corporate procurement agreements worth $6bn with suppliers in Saudi Arabia in a move to advance its strategic localisation programme.
Through the deals, the company intends to bolster its domestic supply chain ecosystem.
This is expected to contribute towards Aramco`s resilience, reliability and ability to meet the changing requirements of its customers.
The new corporate procurement agreements cover various sectors. It spans the supply of a range of products comprising strategic commodities, including instrumentation and electrical and drilling equipment.
Aramco Technical Services executive vice president Wail Al Jaafari 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.
“These agreements move us towards a more prosperous, diverse and resilient supply chain, which will help ensure business continuity.”
The agreements also offer suppliers long-term visibility of demand, allowing them to capture future growth as well as advance localisation initiatives.
Besides, the procurement agreements help Saudi Arabia’s national petroleum and natural gas company to achieve the goals of its iktva program.
Iktva is Aramco`s initiative to facilitate the growth of the economy and create new opportunities for the nationals of Saudi Arabia.
Furthermore, Aramco has signed two memoranda of understanding (MoU) with strategic partners to collaborate on localisation and supply chain development.
In a separate statement, Aramco announced the addition of significant volumes to the proven gas and condensate reserves at the Jafurah unconventional field in Saudi Arabia.
The company has booked 15 trillion standard cubic feet (scf) of raw gas and two billion stock tank barrels (STB) of condensate as proven reserves at the Jafurah field.
