Saudi Aramco draws up multi-billion dollar agreements
Saudi Aramco has signed 15 Memoranda of Understanding (MoUs) and strategic and commercial collaborations for more than US$34 billion with 15 international partner companies and entities from eight countries across three continents.
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The MOUs were signed at the Future Investment Initiative (FII) forum held in Riyadh,with major collaborators including Total, Hyundai, Baker Hughes GE, UAE’s NPCC, Halliburton, And China’s Norinco.
“These collaborations reflect the range and ambition of Saudi Aramco’s business interests, reinforcing its position as the world’s preeminent energy and chemicals company,” the company said in a statement.
“The MOUs reflect both Saudi Aramco’s and the Kingdom’s international partnership strategies and the determination to diversify the economy, enhance the domestic investment environment and boost employment opportunities.”
The MOUs support Saudi Aramco’s strategy across business units, including downstream, offshore, and engineering.
“A number of these MOUs will enhance the In-Kingdom Total Value Add (iktva) program, Saudi Aramco’s flagships initiative to improve the domestic supply chain, its operations and its employment potential, through greater commercial engagement with Saudi businesses,”
Iktva’s aim is to achieve 70% of locally supplied goods and services by 2021.
Saudi Aramco’s general list of signed MOU’s and commercial collaborations are as follows:
- MOU with Total to launch engineering studies to build petrochemical complex in Jubail, Kingdom of Saudi Arabia
- MOU with Total on the potential establishment of a retail service station network
- MOU with Hyundai Heavy Industries (HHI) regarding potential HHI investments in King Salman International Maritime Complex for Industries and Services at Ras Al Khair
- MOU with Baker Hughes GE
- MOU with Schlumberger
- MOU with Halliburton
- MOU with Oilfield Supply Center
- MOU with Flex-Steel to invest in a reinforced thermoplastic pipe (RTP) facility
- MOU with NPCC (National Petroleum Construction Company, U.A.E.) to invest in a fully-integrated fabrication yard and marine base
- MOU with SeAH Changwon Integrated Specialty Steel Co. Limited to invest in localization of engineering steel
- MOU with GumPro (India) to invest in drilling chemicals facility
- MOU with Acwa Power (Kingdom of Saudi Arabia) and Air Product (U.S.) for the Jazan Refinery gasification power project
- MOU with Sumitomo (Japan) for potential investments to upgrade the PetroRabigh Refinery
- MOU with Norinco (China) for potential investments in refining and chemicals projects
- MOU with NOV (U.S.) to invest in manufacturing and repair of onshore rigs and equipment.