Aramco, a global leader in integrated energy and chemicals, has significantly advanced its strategic localization program by finalizing 40 corporate procurement agreements, collectively valued at $6 billion, with suppliers based in the Kingdom of Saudi Arabia. These agreements are designed to fortify Aramco's domestic supply chain ecosystem, enhancing the company's operational resilience and reliability, while also ensuring it can meet the changing needs of its clientele. Furthermore, these agreements offer suppliers a long-term perspective on demand, fostering opportunities for growth and promoting the advancement of localization initiatives. These efforts align with the goals of Aramco's In-Kingdom Total Value Add (iktva) program, a key initiative aimed at fostering economic growth and creating employment opportunities for Saudi nationals. Wail Al Jaafari, Aramco's executive vice president of technical services, highlighted the anticipated positive impacts of these agreements on the domestic value chain and the broader ecosystem. He underscored that these developments are steps towards establishing a more prosperous, diverse, and resilient supply chain, critical for business continuity and a testament to Aramco's commitment to its iktva journey. These agreements also present an opportunity for Aramco's partners to thrive within a dynamic and increasingly diversified operational landscape. The agreements cover a wide array of sectors and include the supply of strategic commodities such as instrumentation, electrical, and drilling equipment. In a move to further bolster its supply chain and localization efforts, Aramco has also entered into two Memoranda of Understanding with strategic partners, setting the stage for collaborative advancements in localization and supply chain development.
