State-run Saudi Aramco signed 15 Memoranda of Understanding (MoUs) and strategic and commercial collaborations valued at more than $34 billion with 15 international partner companies and entities from eight countries in three continents, the company announced Tuesday.
The MOUs were signed at the Future Investment Initiative (FII) forum held in Saudi Arabia's capital Riyadh, according to a statement from the Saudi energy giant.
The MOUs and commercial collaborations are with major companies including Total, Hyundai, Baker Hughes GE, U.A.E.'s NPCC, Halliburton and China's Norinco to name a few.
"These collaborations reflect the range and ambition of Saudi Aramco's business interests, reinforcing its position as the world’s preeminent energy and chemicals company," the statement said.
"The MOUs reflect both Saudi Aramco's and the Kingdom's international partnership strategies and the determination to diversify the economy, enhance the domestic investment environment and boost employment opportunities," it added.
According to the statement, the MOUs support Saudi Aramco's forward-looking strategy across business units, including downstream, offshore, and engineering.
"A number of these MOUs will enhance the In-Kingdom Total Value Add (iktva) program, Saudi Aramco's flagships initiative to improve the domestic supply chain, its operations and its employment potential, through greater commercial engagement with Saudi businesses," it said.
Iktva's localization objective is to achieve 70 percent of locally supplied goods and services by 2021.
According to the list provided by Saudi Aramco, which does not include the respective values, and/or scope of each agreement, the MOUs and commercial collaborations signed are as follows:
1. MOU with Total to launch engineering studies to build petrochemical complex in Jubail, Kingdom of Saudi Arabia
2. MOU with Total on the potential establishment of a retail service station network
3. MOU with Hyundai Heavy Industries (HHI) regarding potential HHI investments in King Salman International Maritime Complex for Industries and Services at Ras Al Khair
4. MOU with Baker Hughes GE
5. MOU with Schlumberger
6. MOU with Halliburton
7. MOU with Oilfield Supply Center
8. MOU with Flex-Steel to invest in a reinforced thermoplastic pipe (RTP) facility
9. MOU with NPCC (National Petroleum Construction Company, U.A.E.) to invest in a fully-integrated fabrication yard and marine base
10. MOU with SeAH Changwon Integrated Specialty Steel Co. Limited to invest in localization of engineering steel
11. MOU with GumPro (India) to invest in drilling chemicals facility
12. MOU with Acwa Power (Kingdom of Saudi Arabia) and Air Product (U.S.) for the Jazan Refinery gasification power project
13. MOU with Sumitomo (Japan) for potential investments to upgrade the PetroRabigh Refinery
14. MOU with Norinco (China) for potential investments in refining and chemicals projects
15. MOU with NOV (U.S.) to invest in manufacturing and repair of onshore rigs and equipment
By Hale Turkes