State oil giant Saudi Aramco has inked 16 purchase agreements worth more than SR26 billion ($6.92 billion)  with some of the country's top pressure vessel manufacturers under the In-Kingdom Total Value Add (IKTVA) programme.

 

Saudi Aramco has further expanded the programme and strengthened its relationship with local industry players by awarding these deals, said the company in a statement. 

 

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, it added.

 

The companies are: 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 Commpany; Inma Steel Oil and Gas and Gulf Sky Factory Company.

 

These pacts will enable these 16 Saudi companies to build up their capabilities and competitiveness in a span of 10 years under the IKTVA programme, it stated.

 

These big contracts are testimony to Saudi Aramco’s solid ongoing commitment in ensuring development of local capabilities and content percentage enhancement among Saudi SMEs under IKTVA, in tandem with Saudi Vision 2030, it stated.

 

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. 

 

Abdulaziz A. Al Abdulkarim, Saudi Aramco VP 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," he remarked.

 

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," said Al Abdulkarim.

 

"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 added.-TradeArabia News Service