Saudi Aramco has revealed that it has signed 50 new Memoranda of Understanding (MOUs) at the sixth edition of the In-Kingdom Total Value Add (iktva) Forum and Exhibition, which is being held at the Dhahran EXPO in Saudi Arabia.
“Major signings” at the event were said to include deals with Schlumberger, relating to a partnership on climate leadership and digitalization through localization initiatives, and Cameron/TechnipFMC/Baker Hughes, relating to wellhead equipment localization procurement agreements. Deals with Larsen & Toubro, Honeywell and Alfanar Company were also described as “major”. The value of the deals was not disclosed by Aramco.
“It wasn’t possible to predict the pandemic, but iktva helped prepare us for the uncertainties it caused,” Aramco President and CEO Amin H. Nasser said in a company statement.
“Our investment in a diversified network of suppliers has helped us maintain a track record of reliability, despite the ongoing impact of Covid-19 on global supply chains. The iktva program continues to prove its value by contributing to an increasingly vibrant, dynamic and business-friendly environment in Saudi Arabia,” he added in the statement.
Aramco noted that the iktva program aims to drive domestic value creation, maximize 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. As a result of iktva, 59 percent of Aramco’s spending in 2021 was directed to domestic suppliers, up from 35 percent in 2015 when the program was launched, the company outlined.
Earlier this month, Aramco announced the signing of one agreement and nine MOUS with “leading Korean entities”. The deals aim to advance Aramco’s downstream strategy and support development of low-carbon energy solutions, while creating new financing options for the company, the business outlined. The value of these deals was also not disclosed by Aramco.
Last month, the company revealed that it had signed a $15.5 billion lease and leaseback deal involving its gas pipeline network with a consortium led by BlackRock Real Assets and Hassana Investment Company. The transaction marked one of the world’s largest energy infrastructure deals and Aramco’s second major pipeline transaction of 2021, Aramco noted in a company statement at the time.
The deal followed a $12.4 billion lease and leaseback transaction concluded in June with a consortium led by EIG Global Energy Partners, which involved Aramco’s stabilized crude oil pipeline network. This deal was first announced in April 2021, when it was described by Aramco as one of the world’s largest energy infrastructure deals.
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