Saudi Aramco signed 66 Memoranda of Understanding (MoUs) and strategic and commercial collaborations valued at more than US$21 billion with international partner companies and entities from 11 countries in several industrial and business sectors across the Saudi Arabian energy sector.
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 state-of-the-art manufacturing processes to deliver transformational non-metallic products, starting with Reinforced Thermoplastic Pipes (RTP) and an investment of around $US110 MM. 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.
The MoUs and commercial collaborations included the following companies and entities:
- Hyundai Heavy Industry
- Aasia Steel
- Oilfields Supply Center (OSC)
- Al-Khorayef Petroleum
- Mitsubishi Hitachi Power Systems
- Schneider Electric
- Advanced Electronic Company (IT)
- XDM 3D Printing
- Shengong New Materials
- Saudi Exports Development Authority
In addition to the signing of MoUs and commercial collaborations, an awards program was held to celebrate the program’s success stories for the year.
The iktva 2020 Excellence Awards winners:
- Highest Overall iktva Performance:
- In services sector: Arabian Drilling Company
- In construction sector: Nasser Saeed Al-Hajri (NSH)
- In manufacturing sector: Saudi Steel Pipe Company
- Best in Training & Development:
- Halliburton Energy Services
- Best in Supplier Development:
- Best in Saudization:
- In manufacturing sector: Advanced Electronics Company Ltd.
- In services sector: Baker Hughes
- Best in Female Employment:
- Best in Export:
- In manufacturing sector: Jeddah Cable Company
- In services sector: JGC Gulf International
The "iktva" program has attracted 468 investments from 25 countries with an estimated capital expenditure of $6.5B, resulting in 44 industrial facilities completed to-date, with another 64 facilities under construction. These investments contribute to building an integrating Saudi supply chain and bringing new capabilities to the Kingdom, such as the first facility for plate casing, the first Reinforced Thermoplastic Pipe (RTP) plant, and the first facility for drilling motor relining.