MOSCOW (MRC) -- Saudi Aramco has signed 59 corporate procurement agreements (CPAs) worth a potential total of USD11 billion with up to 51 domestic and international manufacturers, as a part of its coveted in-kingdom total value add (IKTVA) localisation programme, said the company.
IKTVA is at the heart of Aramco’s long-term local content strategy and plays a crucial role for domestic contractors while also awarding large-scale deals to its pool of long-term agreement (LTA) contractors.
Aramco on Tuesday said that the agreements “are expected to reinforce Aramco’s robust supply chain and result in the development of materials manufacturing facilities in the kingdom".
“The 59 CPAs cover multiple strategic commodities, such as drilling chemicals, wellheads, switchgear, vibration monitoring systems, pipes, compressors, structure steel, fittings and flanges and air-cooled heat exchangers,” Aramco said.
Some leading international players that are part of the new agreement include Baker Hughes, Cameron Al Rushaid, Halliburton, Schlumberger, and TechnipFMC, the Saudi giant said.
“The CPAs fall under a strategic pillar of the Aramco IKTVA programme, wherein they are used to establish long-term agreements and commitments with supplier partners,” it noted.
As per MRC, Saudi Aramco said it plans to invest in a USD7 B project to produce petrochemicals from crude oil at its South Korean affiliate S-Oil Corp's refining complex in the port city of Ulsan. The project, named Shaheen, is the Saudi company's biggest investment in South Korea and will mark the first commercial use of Aramco and Lummus technology to produce chemicals from crude, Aramco said in a statement.