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Saudi Aramco signs multiple deals worth $11 billion in investment push
These agreements signed with companies like Baker Hughes, Cameron Al Rushaid, Halliburton, SLB, and TechnipFMC can create 5,000 new jobs in the kingdom.
With 51 domestic and international manufacturers, Saudi Aramco, one of the largest energy producers in the world, has signed 59 corporate procurement agreements as part of its ‘In Kingdom Total Value Add’ program (iktva).
These $11 billion work agreements—signed with companies like Baker Hughes, Cameron Al Rushaid, Halliburton, SLB, and TechnipFMC—can create 5,000 new jobs in the kingdom.
According to its website, Saudi Aramco started the iktva initiative in 2015 to develop a high-quality supply chain and baseline, measure, and promote growing levels of localization in the kingdom.
These 59 agreements, according to a press statement, include a variety of strategic commodities, including drilling chemicals, wellhead, switchgear, vibration monitoring systems, pipes, compressors, construction steel, fittings and flanges, and air-cooled heat exchangers.
“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,” said Mohammad A. Al-Shammary, vice president of procurement and supply chain management at Aramco.
According to the press statement, the agreements are anticipated to strengthen Aramco’s supply chain and lead to the establishment of facilities for the production of materials in Saudi Arabia.
Since its inception, the iktva initiative has increased the kingdom’s gross domestic product by more than $130 billion and offered its citizens over 100,000 new jobs in the supply chain sector.
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