Agreements aim to advance localization program, strengthen domestic supply chain, and contribute to the development of the Kingdom’s energy services sector.
Wail A. Al Jafaari and other members of Aramco management pose with various participants in the signing ceremony Tuesday for corporate procurement agreements in Dhahran.
Aramco today advanced its strategic localization program by signing 40 corporate procurement agreements worth $6 billion with suppliers in 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. They also provide suppliers with long-term visibility of demand, enabling them to capture future growth and advance localization efforts.
In addition, they contribute to achieving the objectives of Aramco’s iktva program, the Company’s flagship initiative that aims to drive the growth of a vibrant economy, and create new opportunities for Saudi nationals.
“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.”
— Wail A. Al Jaafari, Aramco executive vice president of Technical Services
“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,” said Al Jaafari.
Covering a variety of sectors, the new corporate procurement agreements span the supply of a range of products comprising strategic commodities, such as instrumentation, and electrical and drilling equipment. In addition, Aramco signed two Memoranda of Understanding with strategic partners to collaborate on localization and supply chain development.
— The Arabian Sun: February 27, 2024