Aramco has signed 59 procurement agreements (CPAs) with 51 local and global manufacturers, with potential to create 5,000 new jobs in the Kingdom of Saudi Arabia over the next decade.
The agreements, valued at $11 billion, are expected to reinforce Aramco’s robust supply chain and result in the development of materials manufacturing facilities in the Kingdom, Aramco said in a news statement.
The 59 CPAs cover multiple strategic commodities, such as drilling chemicals, wellheads, switchgears, vibration monitoring systems, pipes, compressors, structure steel, fittings and flanges, and air-cooled heat exchangers. Among the companies signing the agreements were Baker Hughes, Cameron Al Rushaid, Halliburton, SLB, and TechnipFMC. The CPAs fall under a strategic pillar of the Aramco in-Kingdom Total Value Add program (iktva), wherein they are used to establish long-term agreements and commitments with supplier partners.
Ahmad A. Al-Sa’adi, Aramco Senior Vice President of Technical Services, said: “Our investments in a network of accomplished local suppliers strengthen Aramco’s resilience, ensuring that we remain the world’s most reliable energy company.”
Mohammad A. Al-Shammary, Aramco Vice President of Procurement and Supply Chain Management, said: “The CPA holders will be our future strategic manufacturing partners for these commodities, and the agreements further broaden our localization infrastructure across the Aramco network.”
Since the launch of the CPA pillar, Aramco has entered into over 100 CPAs. These strategic agreements have driven localization in critical commodities such as drill bits, downhole, valves, pressure vessels, and process automation systems.
Aramco launched iktva in 2015 with the goal of establishing a world-class supply chain in Saudi Arabia. Since inception, iktva has delivered in key focus areas including Saudi workforce development, research and development, supplier development, and exports.
Since its launch, the iktva program has contributed more than $130 billion to the Kingdom’s gross domestic product, while creating more than 100,000 supply chain jobs for Saudis.