Saudi Aramco has called for increased efforts to reach 70 per cent locally supplied content by 2021 as it signed a raft of MoUs and contracts with local suppliers and international partners.

 

The call came yesterday during Aramco's annual flagship localisation event, the iktva SMEs Forum and Exhibition 2017.

 

Hosted by Amin H Nasser, Saudi Aramco President and CEO, this year’s In-Kingdom Total Value Addition (iktva) forum welcomed Prince Saud Bin Nayef bin Abdulaziz Al Saud, Governor of the Eastern Province; Prince Ahmed bin Fahad bin Salman bin Abdulaziz Al Saud, Deputy Governor of the Eastern Province; Khalid Al Falih, Minister of Energy, Industry & Resources, and a number of global executives.

 

Having in previous years worked closely with large corporations and suppliers the event this year targeted SMEs in an effort to nurture the critical role they will continue to play in the kingdom’s growth and specifically the work to reach its crucial 2030 strategic goals. 

 

In his keynote remarks before an audience of over 2,300 delegates from 30 countries, Nasser highlighted the iktva program and the opportunities it offers to the local supply chain. 

 

Nasser said that iktva aims to deliver a world-class, locally sourced supply chain in the kingdom with an overarching objective of achieving 70 per cent of locally supplied content by 2021. 

 

He said: “iktva aims to promote the added value in the supply chain, to encourage local manufacturers to invest in R&D, and to develop the talent and human resources in the Kingdom. We are very pleased to support iktva plans and we believe that the increasing adoption of iktva principles is clear evidence that we are well positioned to achieve the 2021 objectives.” 

 

Nasser also indicated that Saudi Aramco was on course to end the year with a local purchase rate of 50 per cent which translates to SR13 billion.

 

With the spotlight on SMEs, their essential contribution to the kingdom’s strategic Vision 2030 plan was a key discussion point at the two day event and in further efforts to embed iktva principles, a series of workshops and panel discussions examined the opportunities for investments in local supply chain businesses and activities.   

  

In one of the highlights of the conference, a number of Excellence awards were presented by HRH Prince Saud Bin Nayef Al Saud, Governor of the Eastern Province. These awards recognized excellence in the application of iktva principles.  They were presented to Schlumberger for ‘Best Overall iktva Performance’, Azmeel Contracting for ‘Most Improved iktva Performance;’ Arabian Drilling Company for ‘Best in Training & Development;’ Halliburton for ‘Best in SME Development.’ 

 

Meanwhile, winners of the ‘Best SMEs’ award were Global Company for Downstream Industries (GDI), Innosoft, and AZR Technologies.   

 

In further iktva inspired developments Saudi Aramco signed a suite of MoUs with companies seeking to enhance and develop their application of iktva principles with five-year plans. 

 

• Saudi Aramco and Technicas Reunidas signed an MoU to execute a 5-year iktva plan;

• Saudi Aramco and SNC-Lavalin signed an MoU to initiate the execution of SNC–Lavalin’s 5-year iktva plan and to boost the localisation of critical “craft construction services”, support localization efforts and develop Saudi engineering talent;

• Saudi Aramco and Sinopec signed an MoU to initiate the execution of Sinopec’s 5-year iktva plan to work towards increasing the numbers of new job creating Saudi enterprises; 

• Saudi Aramco and National Petroleum Technology (NPS) signed an MoU to initiate the execution of NPS 5- year iktva plan entailing two major projects in partnership with local and international world class manufacturers and the development of training opportunities for Saudi talent; 

• Saudi Aramco and Taqa signed an MoU to initiate the execution of Taqa’s 5-year iktva plan and to enhance the security of supply and boost job creation among young Saudi talent; 

• Saudi Aramco and Dalma Gulf Drilling signed an MoU to initiate the execution of Dalma’s 5-year iktva plan focusing on the hiring and development of Saudi talent;

• Saudi Aramco and Zamil Offshore signed an MoU to initiate the execution of a 5-year iktva plan and to expand and develop their assets and human capital within the kingdom;

• Saudi Aramco and Advanced Electronics Company (AEC) signed an MoU to execute a 5-year iktva plan highlighting their intention to increase spend on local goods and services and increase Saudization.

 

Saudi Aramco also signed contracts with a total value of SR390 million with a number of local suppliers and also signed an additional SR6.3 million contract with oilfield services company Schlumberger.