Three manufacturing agreements signed recently will help increase Saudi business participation in Saudi Aramco operations. Saudi Aramco executed three five-year agreements with global businesses and their local partners for the local manufacture and inventory management of wellhead equipment. The agreements require the material to be manufactured and warehoused by the suppliers at new in-Kingdom facilities and use national labor and service, according to a report carried by Saudi Aramco's web-site. Besides helping boost the local economy, the agreements also will enhance the manufacturers' responsiveness to unexpected or fluctuating needs in the company's drilling program. Long lead times will be avoided, and 24-hour emergency requirements can be accommodated. About 260 wellhead items are expected to be produced locally. The agreements should boost local manufacturing capabilities to the point that Saudi-manufactured materials, in the future, will be exported to Arabian Gulf countries, further boosting the economy. The three agreements were awarded to Wood Group Pressure Control partnering with Hugayet Trading; Cooper Cameron partnering with Al-Rushaid Co. Ltd.; and FMC Energy Systems partnering with the Saudi Commercial Import Corp.
