Saudi Aramco has signed 66 Memoranda of Understanding (MoUs) and strategic and commercial collaborations valued at more than US$21bn with international partner companies and entities from 11 countries in several industrial and business sectors across the Saudi Arabian energy sector
These deals were signed on the sidelines of the 5th annual iktva (In-Kingdom Total Value Add) forum.
Amin H. Nasser, Saudi Aramco president and CEO, emphasised the impact of partnerships in creating a highly efficient, cost-effective and reliable supply chain by stating: “Future readiness is forged from a culture of excellence - by giving people the skills they need to succeed in the jobs of the future. We’re enabling a vibrant commercial ecosystem that will drive efficiency and reliability of our operations. Through effective governance, iktva has created infrastructure, streamlined processes, and built capabilities that improve return on investment and leverage greater value for our company.”
Nasser concluded his remarks by highlighting that the iktva programme has a win-win nature in creating a sustainable vibrant multi-sector ecosystem. “IKTVA continues to open new doors of opportunity by enhancing the business environment for young Saudis, for entrepreneurs and for businesses, big and small. Ultimately, what counts is the impact it has on people’s lives – that’s iktva in action,” Nasser said.
In addition, Saudi Aramco signed a joint venture agreement with Baker Hughes to establish a 50/50 Non-Metallic Joint Venture (NM JV). The joint venture will be a multi-sectorial non-metallic investment platform designed to innovate, develop and manufacture composite materials for both oil and gas as well as non-oil and gas applications.
The JV will leverage polymer materials and manufacturing processes to deliver transformational non-metallic products, starting with Reinforced Thermoplastic Pipes (RTP) and an investment of around US$110mn. The JV facility will be located at the King Salman Energy Park (SPARK), and will serve the MENA region.
Saudi Aramco’s participation in the NM JV aims to help promote the use of RTPs which consume less energy and are less carbon-intensive compared to conventional steel pipes. The NM JV is in line with Saudi Aramco’s strategy to support R&D, and deploy lower carbon intensity applications and products that are derived from oil.