KSA’s Aramco inks 40 local procurement contracts worth USD 6 bn !_StoryTags_! Saudi Arabia, supply chains, Aramco

Aramco’s localization drive gets a boost: Oil giant Aramco inked 40 corporate procurement agreements worth a combined USD 6 bn with local suppliers as part of its strategic localization program, SPA reports. No details were provided on the suppliers or the breakdown of the agreements. The company also signed two MoUs with unnamed “strategic partners” to cooperate on localization and supply chain development.

What we know: The procurement agreements include the supply of products including strategic goods like electrical equipment and drilling rigs, according to SPA. The agreements will help boost Aramco’s localization program, the In-Kingdom Total Value Add (IKTVA) program, the company’s Executive Vice President for Technical Services Wail Al Jaafari said. The program was launched in 2015 in a bid to increase the use of local supplies and expand local supply chain capacities. Some SAR 1.5 tn were allocated for IKTVA spending over the decade at launch.