Page 14 - DMEA Week 47 2022

DMEA NEWS IN BRIEF DMEA

business new europe bne/IntelliNews

The 59 CPAs cover multiple strategic com- materials globally while providing Aramco with Russian President Vladimir Putin and Turk-
modities, such as drilling chemicals, wellheads, the capacity to embark on the most robust pro- ish counterpart Recep Tayyip Erdogan have
switchgears, vibration monitoring systems, ject portfolio in the company’s history. ordered their officials to work on the creation of
pipes, compressors, structure steel, fittings and Aramco launched iktva in 2015 with the goal a gas hub in Turkey swiftly and in detail.
flanges and air-cooled heat exchangers. Among of establishing a world-class supply chain in Erdogan and Putin envisage the hub pro-
the companies signing the agreements were Saudi Arabia. Since inception, iktva has deliv- viding gas to Europe, at least partly taking on
Baker Hughes, Cameron Al Rushaid, Hallibur- ered in key focus areas including Saudi work- capacities that were once earmarked for the now
ton, SLB and TechnipFMC. The CPAs fall under force development, research and development, apparently abandoned Nord Stream pipelines
a strategic pillar of the Aramco in-Kingdom supplier development and exports. running to Germany. However, to achieve that
Total Value Add programme (iktva), wherein Since its launch, the iktva programme has they might have to work on achieving some
they are used to establish long-term agreements contributed more than $130bn to the Kingdom’s European disunity—in response to Russia’s war
and commitments with supplier partners. gross domestic product, while creating more in Ukraine and politicising of its gas supply to
Ahmad A. Al-Sa’adi, Aramco Senior Vice than 100,000 supply chain jobs for Saudis. The Europe, the EU is working on entirely mov-
President of Technical Services, said: “Our signif- programme has matured and grown stronger ing away from reliance on Russian gas such as
icant investments in a network of accomplished through some of the industry’s most challenging by bringing in American, Middle Eastern and
local suppliers strengthens Aramco’s resilience, times, while bringing reliability and sustainabil- other liquefied natural gas (LNG) to gasification
ensuring that we remain the world’s most reliable ity to Aramco’s supply chain. terminals that are being built in Germany and
energy company. We are also extensively build- Saudi Aramco, November 22 2022 other countries.
ing commercial ecosystems globally by partner- Donmez in early November told TRT Haber
ing with some of the world’s top energy, logistics, that Ankara might hold a gas hub project confer-
and manufacturing companies.” TERMINALS & TRANSPORT ence for gas suppliers and buyers.
Mohammad A. Al-Shammary, Aramco Vice Putin has said gas prices could be set at the
President of Procurement and Supply Chain Turkey to “start work in hub rather than in Russia and that he believes
Management, said: “The CPA holders will be some European countries could be persuaded to
our future strategic manufacturing partners for new year” on gas hub sign contracts.
these commodities, and the agreements further bne/IntelliNews, November 18 2022
broaden our localization infrastructure across corresponding to
the Aramco network.”
The CPAs aim to establish a framework for Moscow proposal REFINING & FUELS
mutual collaboration and joint success. CPA
holders share Aramco’s vision for establishing a Turkey expects to start working on the crea- President of Mozambique
world-class supply chain in Saudi Arabia. Under tion of a gas hub corresponding to a proposal
their CPA agreements, supplier partners agree from Moscow at the beginning of 2023, Turkish inaugurates Coral-Sul
to establish local facilities, transfer technology, Energy and Natural Resources Minister Fatih
perform local research and development, and Donmez told NTV on November 18. FLNG installation
develop the local workforce and supply chain, “We plan to define the roadmap until the end
while gaining preferred status with Aramco, of the year. And to start works under the pro- The President of Mozambique, Filipe Jacinto
Aramco joint ventures, and affiliates. ject from the beginning of 2023,” Donmez said, Nyusi, has visited and inaugurated the Cor-
Since the launch of the CPA pillar, Aramco according to Prime news agency. al-Sul FLNG installation, located in the
has entered into over 100 CPAs. These strategic The minister said that Turkey is in negotia- ultra-deep waters of the Rovuma basin. The
agreements have driven localization in critical tions with several potential gas suppliers. Apart inauguration was attended by the Minister of
commodities such as drill bits, downhole, valves, from Russia, Azerbaijan and Turkmenistan have Mineral Resources and Energy Carlos Zacarias
pressure vessels and process automation sys- been mentioned on the market as potential sup- and by representatives of Mozambique’s
tems. In addition, some CPA holders now export pliers of gas to the hub. government.

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