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INITIATIVE HELPS DIVERSIFICATION

Aramco signs 50 MoUs at iktva forum

DHAHRAN, January 24, 2022

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 under way in Dhahran.
 
The 6th edition of the event was inaugurated by HRH Prince Saud bin Nayef bin Abdulaziz Al-Saud, Governor of the Eastern Province, in the presence of HRH Prince Abdulaziz bin Salman bin Abdulaziz Al Saud, Minister of Energy, HRH Ahmed bin Fahd Al Saud, Deputy Governor of the Eastern Province, and Yasir Othman Al-Rumayyan, Chairman of Aramco’s Board of Directors. 
 
Progress in the company’s flagship business continuity initiative is being showcased at the three-day gathering, which runs from January 24 to 26 at Dhahran Expo.
 
Major signings 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 localisation;
• Sutherland Global Services – Smart City services localization;
• Tanajib Cogeneration Power Company – Tanajib cogeneration and desalination agreement 
• Honeywell – Localisation of process automation solutions;
• Alfanar Company - Carbon fiber investment collaboration
 
The iktva programme aims to drive domestic value creation, maximise long-term economic growth and diversification, and build a world-class supply chain that facilitates the development of a diverse, sustainable and a 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 programme 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 forum also recognises the outstanding achievements of Aramco’s programme partners across 10 categories, which include overall iktva performance, training, Saudization, female representation and exports.
 
Amin H Nasser, Aramco President and CEO, said: “It wasn’t possible to foresee the consequences of the Covid-19 pandemic, but iktva helped us to prepare for the disruptions it caused to the global supply chain. Our investment in a diversified network of suppliers has helped us maintain a track record of reliability and iktva continues to prove its value by contributing to an increasingly vibrant, dynamic and business-friendly environment in Saudi Arabia.”
 
The iktva programme has 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, said a statement.
 
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 following are the 2022 iktva award winners, announced at the event:
• Highest overall iktva performance -- Services sector: Schlumberger Middle East; Construction sector: CAT International; Manufacturing sector: Alkhorayef Petroleum
• Best in training and development: Halliburton
• Best in supplier development  -  Baker Hughes
• Best in Saudization  -- Manufacturing sector: ArcelorMittal; Services sector: Arabian Drilling Company
• Best in female employment - Tamimi Global 
• Best in exports - Manufacturing sector: Al-Babtain Power and Telecommunication;
Services sector: Saudi Aramco Nabors Drilling
 - TradeArabia News Service



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