Saudi Aramco signs 66 MoUs worth $21 billion under IKTVA
56% of Saudi Aramco’s procurement was spent in-Kingdom in 2019 compared to 35% in 2015
Saudi Aramco has signed 66 memoranda of understanding (MoU) and other collaborations with a combined value of more than $21 billion under its In-Kingdom Total Value Add (IKTVA) localisation programme with international partner companies and entities from 11 countries in several industrial and business sectors across the Saudi Arabian energy sector.
Amin H. Nasser, Saudi Aramco president & CEO, emphasised the impact of partnerships in creating a highly efficient, cost-effective and reliable supply chain by stating: “Future readiness is forged from a culture of excellence - by giving people the skills they need to succeed in the jobs of the future. We’re enabling a vibrant commercial ecosystem that will drive efficiency and reliability of our operations. Through effective governance, iktva has created infrastructure, streamlined processes, and built capabilities that improve return on investment and leverage greater value for our company.”
Nasser concluded his remarks by highlighting that the iktva program has a win-win nature in creating a sustainable vibrant multi-sector ecosystem. “IKTVA continues to open new doors of opportunity by enhancing the business environment for young Saudis, for entrepreneurs and for businesses, big and small. Ultimately, what counts is the impact it has on people’s lives – that’s iktva in action,” Nasser said.
IKTVA was launched in 2015, when Aramco's in-Kingdom procurement sat at 35%. In 2019, that figure rose to 56%.
The MoUs and commercial collaborations included the following companies and entities:
- Hyundai Heavy Industry
- Aasia Steel
- Oilfields Supply Center (OSC)
- Al-Khorayef Petroleum
- Mitsubishi Hitachi Power Systems
- Schneider Electric
- Advanced Electronic Company (IT)
- XDM 3D Printing
- Shengong New Materials
- Saudi Exports Development Authority
In addition to the signing of MoUs and commercial collaborations, an awards program was held to celebrate the program’s success stories for the year.
The iktva 2020 Excellence Awards winners:
Highest Overall iktva Performance:
- In services sector: Arabian Drilling Company
- In construction sector: Nasser Saeed Al-Hajri (NSH)
- In manufacturing sector: Saudi Steel Pipe Company
Best in Training & Development:
- Halliburton Energy Services
Best in Supplier Development:
- Schlumberger Middle East
Best in Saudization:
- In manufacturing sector: Advanced Electronics Company Ltd.
- In services sector: Baker Hughes
Best in Female Employment:
- Tamimi Global
Best in Exports:
- In manufacturing sector: Jeddah Cable Company
- In services sector: JGC Gulf International
The "iktva" program has attracted 468 investments from 25 countries with an estimated capital expenditure of $6.5B, resulting in 44 industrial facilities completed to-date, with another 64 facilities under construction. These investments contribute to building an integrating Saudi supply chain and bringing new capabilities to the Kingdom, such as the first facility for plate casing, the first Reinforced Thermoplastic Pipe (RTP) plant, and the first facility for drilling motor relining.