Company-sponsored program delivers resilience amid global chain disruption.
Aramco’s supply chain resilience has been further enhanced by the signing of 50 new Memorandums of Understanding (MoUs) at the In-Kingdom Total Value Add (iktva) Forum and Exhibition.
The sixth edition of the event was inaugurated by HRH Prince Saud bin Nayef bin Abdulaziz Al-Saud, Governor of the Eastern Province, in the presence of HRH Prince Abdulaziz bin Salman bin Abdulaziz Al Saud, Minister of Energy; HRH Prince Ahmed bin Fahd bin Salman bin Abdulaziz Al Saud, Deputy Governor of the Eastern Province; and HE Yasir O. Al-Rumayyan, Chairman of Aramco’s Board of Directors.
The sixth edition of the event was inaugurated by HRH Prince Saud bin Nayef bin Abdulaziz Al-Saud.
HRH Prince Abdulaziz bin Salman bin Abdulaziz Al Saud, Saudi Minister of Energy.
HE Yasir O. Al-Rumayyan, Chairman of Aramco’s Board of Directors.
Progress in our flagship business continuity initiative is being showcased at the three-day gathering, which runs through Jan. 26 at the Dhahran EXPO.
The iktva program looks to drive domestic value creation, maximize long-term economic growth and diversification, and build a world-class supply chain that facilitates the development of a diverse, sustainable, and a globally competitive energy sector in the Kingdom at a time when global supply chains have been disrupted by COVID-19.
As a result of iktva, 59% of Aramco’s spending in 2021 was directed to domestic suppliers, up from 35% in 2015 when the program was launched.
Amin Nasser speaks at the sixth iktva Forum at the Dhahran EXPO on Monday.
Paving the Way to Economic Success
Held under the theme ‘Paving the Way to Economic Success,' the iktva forum highlights how partnerships with some of the world’s top energy, logistics, and manufacturing companies continue to enhance the domestic commercial ecosystem and enable the reliable supply of energy to the world.
The forum also recognizes the outstanding achievements of Aramco’s program partners across 10 categories, which include overall iktva performance, training, Saudization, female representation and exports.
It wasn’t possible to foresee the consequences of COVID-19, but iktva helped us to prepare for the disruptions it caused to the global supply chain. Our investment in a diversified network of suppliers has helped us maintain a track record of reliability and iktva continues to prove its value by contributing to an increasingly vibrant, dynamic and business-friendly environment in Saudi Arabia.
— Amin Nasser, Aramco president and CEO
The iktva program has helped establish a competitive industrial base, resulting in exports to more than 40 countries. Meanwhile, local content requirements embedded in thousands of contracts have contributed more than $100 billion to the national economy.
At the same time, iktva has attracted more than 540 investments to Saudi Arabia from 35 countries.
Innovation and sustainability are essential components of the iktva model, which embraces new technologies, encourages more efficient logistics networks and emphasizes the Circular Carbon Economy framework.
Cybersecurity is another program priority, ensuring both Aramco and its network of suppliers and contractors have robust protections in place to defend against emerging threats and safeguard business continuity.
Major Signings
The major signings from the forum's opening featured a wide array of company's.
These included:
- Schlumberger – Partnership on climate leadership and digitalization through localization initiatives
- Cameron/TechnipFMC/Baker Hughes – Wellhead equipment localization procurement agreements
- Larsen & Toubro – Pressure vessel fabrication localization
- Sutherland Global Services – Smart City services localization
- Tanajib Cogeneration Power Company – Tanajib cogeneration and desalination agreement
- Honeywell – Localization of process automation solutions
- Alfanar Company - Carbon fiber investment collaboration.
Iktva Awards
The 2022 iktva award winners included the following recognitions:
- Highest overall iktva performance
- Services sector: Schlumberger Middle East
- Highest overall iktva performance
- Construction sector: C.A.T International
- Highest overall iktva performance
- Manufacturing sector: Alkhorayef Petroleum
- Best in training and development: Halliburton
- Best in supplier development: Baker Hughes
- Best in Saudization
- Manufacturing sector: ArcelorMittal
- Best in Saudization
- Services sector: Arabian Drilling Company
- Best in female employment: Tamimi Global
- Best in exports
- Manufacturing sector: Al-Babtain Power and Telecommunication
- Best in exports
- Services sector: Saudi Aramco Nabors Drilling