Saudi Aramco's commitment to develop a competitive and reliable local supply chain through its In-Kingdom Total Value Add (IKTVA) programme was given a significant boost with the signing of a Memorandum of Understanding (MoU) with one of its key supply chain partners, Kellogg Brown & Root Limited (KBR).
Hosted by Amin Nasser, president and CEO, Saudi Aramco, the MoU signing was the latest major milestone for the ambitious IKTVA programme, which strives to expand business operations that help drive value creation and maximise long-term economic growth, diversification, job creation, and workforce development to support a rapidly changing business environment.
The programme will enable the company to achieve at least 70 percent of its procurement spending within the Kingdom’s supply chain by 2021.
With the Kingdom’s Vision 2030 plan, IKTVA is part of a broad-based effort to strengthen and diversify the Saudi economy, through the localisation of key manufacturing and service industries within the Kingdom, and the creation of thousands of new jobs for talented young Saudi citizens.
Nasser and Stuart Bradie, president and CEO, KBR, signed the MoU in the presence of Ahmad A Al Sa’adi, senior vice president, technical services, Saudi Aramco, and Mohammed Al Shammari, acting executive director, procurement and supply chain management, Saudi Aramco, as well as Jay Ibrahim, president, engineering and construction, Middle East and North Africa, KBR.
By signing the MoU, KBR has committed itself to a five-year action plan to expand and develop KBR’s physical and human capital within the Kingdom to promote Saudi Aramco’s interests in creating and maintaining a reliable local supply, as well as fortifying the local economy through localising goods and services. The IKTVA action plan will help to ensure that KBR remains compliant with the IKTVA programme and will aid Saudi Aramco in meeting the 2021 objectives.
The action plan includes provisions for cooperation between the two companies, including the sharing of information to help Saudi Aramco monitor KBR’s compliance with the IKTVA action plan, as well as provisions for business development, in which both parties can seek opportunities to expand their current business relationship.