Page 4 - MEOG Week 04 2022

MEOG COMMENTARY MEOG

Aramco signs deals

amid localisation push

The state oil giant is continuing its push to indigenise energy and technology
services to support the push to expand oil production and diversify the economy.

SAUDI ARABIA SAUDI Aramco signed a raft of supply chain to Saudi Vision 2030. An iktva key performance
deals during its sixth in-Kingdom total val- indicator (KPI) is included in the performance
ue-add (iktva) Forum in Dhahran this week, matrices of each of the company’s divisions and
WHAT: against a backdrop of increased pressure on ser- departments.
Aramco this week held its vices companies to move their regional opera-
iktva Forum in Dhahran, tions to the country. iktva Forum
signing 50 MoUs with Just under a year ago, Riyadh announced This week’s iktva Forum, which was hosted at
companies largely that companies must relocate their regional the Dhahran EXPO within Aramco’s compound
focused on localising headquarters to Saudi Arabia by January 1, 2024 HQ of the same name, was billed as “the region’s
fabrication and support if they want to continue having access to govern- premier energy supply chain event”.
services. ment contracts. Illustrating the importance of the supply
An official source told the Saudi Press Agency chain to Aramco’s business and of ‘Saudisation’
WHY: at the time that once the policy is implemented, to the Kingdom’s future, the event was inaugu-
Saudi Arabia is tussling the government will cease contracting with com- rated by Prince Saud bin Nayef bin Abdulaziz
with neighbouring panies primarily based elsewhere in the region, Al-Saud, Prince of the Eastern Province, and was
countries to attract with the legislation applying to those working attended by Energy Minister Prince Abdulaziz
investment and talent with Saudi agencies, institutions and govern- bin Salman bin Abdulaziz Al Saud, and Aramco
while its large population ment-owned funds. chairman Yasir Othman Al-Rumayyan.
needs jobs, an imperative With many energy companies having built a Prince Abdulaziz said that the Kingdom
that is not felt by the UAE Gulf base in the UAE, the move will represent a would soon form a special committee to support
or Qatar. clear challenge to the Emirates’ domination of energy sector localisation that will be supervised
foreign direct investment (FDI) as the Kingdom by the Supreme Committee for Energy Mix
WHAT NEXT: seeks to knock the UAE from top spot. Affairs for Electricity Production and Empow-
The new facilities and The drive comes as Riyadh pushes to create erment of Renewable Energy, which is headed by
services will support jobs and turn the capital into one of the world’s Crown Prince Mohammed bin Salman (MbS).
Aramco’s push to top 10 city economies and Aramco continues to Meanwhile, Aramco president and CEO
increase maximum prioritise local content through various signifi- Amin Nasser told attendees: “It wasn’t possi-
sustainable oil capacity cant initiatives, of which iktva is the most impor- ble to predict the pandemic, but iktva helped
to 13mn bpd by 2027. tant, and forms a major part of its commitment prepare us for the uncertainties it caused. Our

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