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Aramco invests $6bn to bolster local supply chain

Aramco's 40 agreements cover the supply of a range of products comprising strategic commodities Aramco
Aramco's 40 agreements cover the supply of a range of products comprising strategic commodities

Saudi Aramco, the world’s largest oil producer, has signed 40 corporate procurement agreements worth $6 billion to boost its localisation programme.

The agreements cover supply of a range of products comprising strategic commodities, such as instrumentation and electrical and drilling equipment.

The move will strengthen Aramco’s domestic supply chain ecosystem, providing suppliers with long-term demand visibility and advance localisation efforts.

The oil major’s In-Kingdom Total Value Add (IKTVA) programme aims to create economic growth and job opportunities for Saudi nationals. 

“The 40 new agreements are expected to contribute to the domestic value chain, and further enhance the ecosystem that Aramco is helping to build,” Wail Al Jaafari, executive vice president of technical services, Aramco, said.

Earlier this month, energy minister Prince Abdulaziz bin Salman said Aramco found significant quantities of proven reserves of gas and condensate in the Jafurah unconventional field.

In another update, the oil company said that work is currently underway to deliver production at Jafurah, with plans to ramp up to reach a sustainable sales gas rate of two billion standard cubic feet by 2030, in addition to significant volumes of ethane, natural gas liquids and condensate.

The Saudi oil company has already selected contractors for engineering, procurement and construction works on 16 of 17 programme packages for the expansion of master gas system, which will bolster the kingdom’s  energy infrastructure to support growing domestic gas demand.

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