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Saudi Aramco’s supply chain resilience has been further enhanced by the signing of 50 new Memoranda of Understanding (MoUs) at the In-Kingdom Total Value Add (iktva) Forum and Exhibition, the oil giant said in a statement today, Jan. 24.
Progress in the company’s flagship business continuity initiative is being showcased at the three-day gathering, which runs from Jan. 24 to 26 at Dhahran EXPO.
The iktva program aims to drive domestic value creation, maximize long-term economic growth and diversification and build a world-class supply chain that facilitates the development of a diverse, sustainable and globally competitive energy sector in the Kingdom, at a time when global supply chains have been disrupted by the COVID-19 pandemic.
As a result of iktva, 59% of Aramco’s spending in 2021 was directed to domestic suppliers, up from 35% in 2015 when the program was launched.
Held under the theme “Paving the way to economic success”, the iktva forum highlights how partnerships with some of the world’s top energy, logistics, and manufacturing companies continue to enhance the domestic commercial ecosystem and enable the reliable supply of energy to the world.
The iktva program helped establish a competitive industrial base, resulting in exports to more than 40 countries. Meanwhile, local content requirements embedded in thousands of contracts have contributed more than $100 billion to the national economy.
At the same time, iktva has attracted more than 540 investments to Saudi Arabia from 35 countries.
Innovation and sustainability are essential components of the iktva model, which embraces new technologies, encourages more efficient logistics networks and emphasizes the circular carbon economy framework.
Cybersecurity is another program priority, ensuring both Aramco and its network of suppliers and contractors have robust protections in place to defend against emerging threats and safeguard business continuity.
The major MoUs signed include:
Schlumberger – Partnership on climate leadership and digitalization through localization initiatives
Cameron/TechnipFMC/Baker Hughes – Wellhead equipment localization procurement agreements
Larsen & Toubro – Pressure vessel fabrication localization
Sutherland Global Services – Smart City services localization
Tanajib Cogeneration Power Company – Tanajib cogeneration and desalination agreement
Honeywell – Localization of process automation solutions
Alfanar Company - Carbon fiber investment collaboration
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