Saudi Aramco empowers local capabilities with purchase agreements worth more than SR26 billionMay 6, 2018, 8:17:58 AM GMT+3 Economics News
DHAHRAN - SPA
Saudi Aramco has further expanded its In-Kingdom Total Value Add (IKTVA) program and strengthened its relationship with local industry players by awarding purchase agreements to 16 Saudi pressure vessels manufacturers.
The agreements, carrying a procurement value of more than SR26 billion, further enhances the company’s ongoing support and commitment to empower local companies within the small and medium-sized enterprises (SMEs) realm under IKTVA, in tandem with Saudi Vision 2030.
The purchase agreements, signed on May 1, will focus on the supply of pressure vessels by local manufacturers, mandated under IKTVA goals as well as to actively pursue Saudization targets. The 16 companies are expected to build up their capabilities and competitiveness throughout the 10 years agreement duration.
Abdulaziz A. Al Abdulkarim, Saudi Aramco Vice President of Procurement and Supply Chain Management, commended the manufacturers for developing robust IKTVA action plans that will increase the number of Saudi jobs and avail more business in pressure vessels components to local SMEs.
Al Abdulkarim set the expectations with the manufacturers to work closely with Saudi Aramco to increase the percentage of Saudization under these agreements at all levels and disciplines including engineers, welders and other professional skilled workers.
“These agreements, set for 10 years, will expand the local industry’s capability and provide high quality supply of materials and services to Saudi Aramco. IKTVA is a cornerstone of Saudi Aramco’s procurement process which will expedite localization, promote locally-based SMEs and help economic diversification in support of Saudi Vision 2030. SMEs are the engine of innovation for economic growth and development. They have the agility, the know-how, the market expertise, and the products the oil and gas industry requires. That is why Saudi Aramco recognizes the huge potential of SMEs and we believe the companies chosen under this agreement will step up to the challenge and meet the required expectations,” he said.
Pressure vessels represent an integral and critical equipment group for oil & gas processing facilities that require sophisticated manufacturing capabilities and labor skills.
Saudi Aramco is also extending the IKTVA requirements to the procurement of other strategic materials such as drilling equipment, process automation systems, line pipes, pumps and valves.