Saudi Aramco awards deals worth $7 bln to 16 local firms

State-owned Saudi Aramco on Saturday awarded 16 local companies deals worth more than SAR 26 billion ($6.93 billion) as part of its program to expand the Kingdom’s domestic industrial base and manufacturing, it said in a statement on Saturday.

The 10-year purchase agreements, signed on May 1, will focus on the supply of pressure vessels by local manufacturers, mandated under its In-Kingdom Total Value Add (IKTVA) goals.

The 16 companies are as follows:

Al-Zamil Process Equipment

Al-Zamil Heavy Industries

Arabian CBI

Hesham Al-Sewedy

Geyad Factory

Olayan Descon Engineering

Saudi Arabian Fabricated Metals

Gulf Steel Works

Bemco Steel Industries

NATCO Al-Rushaid Middle East

Al-Zamil Metal Works

TItanium & Steel Manufacturing Company (TSM Arabia)

Petron Saudi Industrial Co.

Inma Steel

Oil and Gas eq.

Gulf Sky Factory Company

“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," said Abdulaziz A. Al Abdulkarim, Aramco’s Vice President of Procurement and Supply Chain Management.

IKTVA is a cornerstone of Saudi Aramco’s procurement process that aims to expedite localization, promote locally-based small and medium-sized enterprises and help economic diversification in line with Vision 2030.

The oil giant also plans to extend the IKTVA requirements to the procurement of other strategic materials such as drilling equipment, process automation systems, line pipes, pumps and valves.