Saudi Aramco signs 22 agreements to boost industrial investment

The deals are part of the state oil company's Namaat programme

Since the launch of Iktva, the local manufacturing component required by Aramco from its partners rose to 56% in 2019, compared with 35% in 2015. Mona Al Marzooqi/ The National Saudi Aramco. logo. ADIPEC, Day 2. Abu Dhabi, United Arab Emirates. Mona Al Marzooqi/ The National ID: 93082 Reporter: Anthony McAuley Section: Business *** Local Caption *** 161108-MM-ADIPECday2-030.JPGShow less

Saudi Aramco, the world's largest oil-exporting company, signed 22 agreements with the kingdom's Public Investment Fund and several energy companies as part of its industrial investment programme.

The company also signed an agreement to establish a joint venture with energy services company Honeywell to develop digital solutions geared towards sustainability, particularly in industry.

Aramco did not disclose the value of these contracts.

The agreements are part of the state oil company's Namaat programme, which seeks to drive industrial investment. It complements Aramco's existing In-Kingdom Total Value Add (Iktva) programme.

Since the launch of Iktva, the local manufacturing component required by Aramco from its partners rose to 56 per cent in 2019, compared with 35 per cent in 2015.

Programmes such as Namaat and Iktva enhance "the kingdom’s industrial, technology and sustainability infrastructure through large-scale investments and key partnerships," said Aramco chairman Yasir Al Rumayyan.

"Such initiatives help further drive economic growth and diversification, ensure greater reliability of energy supply, effectively localise the industrial supply chain, and create better jobs and skillsets," he said.

Aramco signed agreements with companies including Air Liquide, Haliburton, Baker Hughes and Schlumberger on potential partnerships in carbon capture and sequestration.

The company also signed agreements with DHL to create a local industrial logistics hub and one with French company Veolia to establish a waste management company.

The state oil company signed engineering, procurement and construction contracts with Samsung Engineering, Hyundai and Saipem.

"Namaat offers our partners significant opportunities to participate in Aramco’s long-term growth strategy and play a vital role in the kingdom’s expanding energy and chemicals supply chain," said Aramco president and chief executive Amin Nasser.

The agreements build on partnerships signed last year with Shell, Dutch company AMG Recycling, China's Suzhou XDM on steel-plate manufacturing, industrial 3D printing, energy management, recycling and chip production.

In March, Aramco signed a long-term service agreement with Siemens Energy to obtain equipment for its oil fields.