Saudi Aramco signs deals worth $7bn with local SMEs

Agreements are part of the company's In-Kingdom Total Value Add (IKTVA) programme
By Bernd Debusmann Jr
Sun 06 May 2018 09:43 AM

Saudi Aramco has awarded purchase agreements to 16 Saudi pressure vessel manufacturers as part of an expansion of its 'In-Kingdom Total Value Add' (IKTVA) programme, the company announced on Saturday.

The agreements, which collectively carry a procurement value of over $6.26 billion, will focus on the supply of pressure vessels by 16 local manufacturers.

According to Saudi Aramco, the agreements enhance the company’s ongoing support and commitment to empower Saudi small and medium-sized enterprises (SMEs) in tandem with Saudi Vision 2030.

“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 Al Abdulkarim, Saudi Aramco’s vice president of procurement and supply chain management.

“IKTVA is a cornerstone of Saudi Aramco’s procurement process which will expedite localisation, promote locally-based SMEs and help economic diversification in support of Saudi Vision 2030,” he added.

Al Abdulkarim added that 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,” he said.

“That is why Saudi Aramco recognises 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.”

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Last Updated: Sun 06 May 2018 10:26 AM GST

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