Aramco, one of the world’s leading integrated energy and chemicals companies, has announced it has signed 40 corporate procurement agreements worth $6 billion with suppliers in the Kingdom of Saudi Arabia.
The agreements “aim to strengthen Aramco’s domestic supply chain ecosystem, contributing to the company’s resilience, reliability and ability to meet the evolving needs of its customers”, Aramco said.
They also provide suppliers with long-term visibility of demand, enabling them to capture future growth and advance localization efforts and contribute to achieving the objectives of Aramco’s iktva programme.
The new corporate procurement agreements span the supply of a range of products comprising strategic commodities, such as instrumentation, and electrical and drilling equipment.
“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,” said Wail Al Jaafari, Aramco Executive Vice President of Technical Services.
“These agreements move us towards 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.”
In addition to the agreements, Aramco also signed two Memoranda of Understanding with strategic partners to collaborate on localisation and supply chain development.
Last month, Aramco revealed it will not aim to increase its maximum sustainable capacity (MSC) to 13 million barrels per day (bpd), as previously planned, after receiving a directive from the Kingdom’s Energy Ministry.
