Energy, Automobile, EV, Renewable News | Aramco signs 59 new agreements worth US$11 billion

Aramco signs 59 new agreements worth US$11 billion

November 23, 2022

Aramco signed 59 corporate procurement agreements (CPAs) with 51 local and global manufacturers, with potential to create 5,000 new jobs in the Kingdom of Saudi Arabia over the next decade. The agreements, valued at $11 billion, 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, switchgears, vibration monitoring systems, pipes, compressors, structure steel, fittings and flanges, and air-cooled heat exchangers. Among the companies signing the agreements were Baker Hughes, Cameron Al Rushaid, Halliburton, SLB, and TechnipFMC. The CPAs fall under a strategic pillar of the Aramco in-Kingdom Total Value Add program (iktva), wherein they are used to establish long-term agreements and commitments with supplier partners.

The CPAs aim to establish a framework for mutual collaboration and joint success. CPA holders share Aramco’s vision for establishing a world-class supply chain in Saudi Arabia. Under their CPA agreements, supplier partners agree to establish local facilities, transfer technology, perform local research and development, and develop the local workforce and supply chain, while gaining preferred status with Aramco, Aramco joint ventures, and affiliates.

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