South Korean giant Samsung Engineering has signed a deal with Saudi Aramco for the national engineering, procurement and construction (EPC) initiative that aims to increase local participation in projects and fosters joint ventures with Saudi players, as a part of Saudi Arabia’s Namaat programme.
As a part of the newly signed agreement, the South Korean player will establish a joint venture with a leading local contractor Al Rushaid Petroleum Investment Company (ARPIC), with an objective of “increasing Saudisation levels, maximising In Kingdom Total Value Add (IKTVA) targets and deploying leading construction technologies", Samsung said.
The company added that ARPIC has multiple collaborations in the oil and gas industry, including joint ventures and affiliates in the areas of manufacturing, construction and engineering.
Aramco’s IKTVA localisation programme is a key part of its strategy to ramp up local investments in crucial EPC projects by 2030.
Leading international EPC giants operating in Saudi Arabia are increasingly scaling up their local capabilities, in tune with Aramco’s IKTVA scheme, Upstream understands.
The Namaat programme “aims to build national champions, create a robust industrial ecosystem and introduce unique job opportunities”, Samsung said.
The company confirmed it has carried out 30 projects in Saudi Arabia over the past two decades, including 16 projects with Aramco.
The South Korean giant last year secured a key EPC package for Aramco’s giant Jafurah unconventional gas development, which involves gas processing facilities with two trains, each handling about 550 million cubic feet per day of raw gas.