Aramco signs 40 procurement deals worth $6 billion

National oil company Aramco aims to strengthen domestic supply chain, and contribute to development of energy services sector in Saudi Arabia

Saudi Arabia's national oil company Aramco announced Tuesday that it had signed 40 corporate procurement agreements worth $6 billion with suppliers in Saudi Arabia.

The 40 new deals are expected to contribute to the domestic value chain and further enhance the ecosystem that Aramco is helping to build, said Wail Al Jaafari, Aramco’s executive vice president of technical services, according to a statement from the company.

Encompassing diverse industries, the new corporate procurement deals cover the supply of a wide range of strategic goods, including essential instrumentation, and electrical and drilling equipment.

'These agreements move us towards a more prosperous, diverse and resilient supply chain, which will help ensure business continuity,' Al Jaafari said.

The deals aim to bolster Aramco’s domestic supply chain and contribute to the development of the energy services sector in Saudi Arabia, the statement added.

They also represent a key milestone in Aramco’s In-Kingdom Total Value Add (IKTVA) program, which aims to increase local content and supply chains.

According to the statement, the company also signed two Memoranda of Understanding with strategic partners to collaborate on localization and supply chain development.

By Handan Kazanci

Anadolu Agency

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