Saudi Aramco, the world’s largest crude oil exporter, has signed 50 agreements at its in-kingdom total value add (IKTVA) forum and exhibition.
Leading oil and gas services players Schlumberger, TechnipFMC, Larsen & Toubro, Honeywell, Baker Hughes and Cameron were among the industry heavyweights to sign agreements at the event at Dhahran in Saudi Arabia.
The key deals include partnerships on climate leadership and digitalisation through localisation with Schlumberger; wellhead equipment localisation procurement agreements with Cameron, TechnipFMC & Baker Hughes; and a pressure vessel fabrication localisation deal with L&T, Aramco said on Monday.
The state-owned giant has an increased focus on localisation in line with its 2030 long-term strategy.
It said that “local content requirements embedded in thousands of contracts have contributed more than $100 billion to the national economy”.
The IKTVA programme launched in 2015 “aims to drive domestic value creation, maximise long-term economic growth and diversification”, and build a supply chain that facilitates the development of a globally competitive energy sector in the kingdom.
“As a result of IKTVA, 59% of Aramco’s spending in 2021 was directed to domestic suppliers, up from 35% in 2015 when the program was launched,” it said.
Chief executive Amin Nasser said IKTVA has helped Aramco to prepare for the uncertainties caused by the pandemic.
“Our investment in a diversified network of suppliers has helped us maintain a track record of reliability, despite the ongoing impact of Covid-19 on global supply chains,” he said.
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