Saudi Aramco signs 15 Memoranda of Understanding worth $34 billion

At the highly impactful Future Investment Initiative (FII) forum in Riyadh, Saudi Aramco signed 15 Memoranda of Understanding (MOUs) and strategic and commercial collaborations valued at more than $34 billion with 15 international partner companies and entities from eight countries in three continents. These collaborations reflect the range and ambition of the company’s business interests, reinforcing its position as the world’s preeminent energy and chemicals company.

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 forward-looking strategy across business units, including downstream, offshore, and engineering. It engages with companies representing eight countries, including major businesses in France, China, the US, Japan, the UAE, the United Kingdom, South Korea and India.

A number of these MOUs will enhance the In-Kingdom Total Value Add (iktva) program, Saudi Aramco’s flagship initiative to improve the domestic supply chain, its operations and its employment potential, through greater commercial engagement with Saudi businesses.  Iktva’s localization objective is to achieve 70% of locally supplied goods and services by 2021. 

In the area of job creation, Saudi Aramco has proactively pursued opportunities to pilot the high value job creation in the kingdom, increasing opportunities for Saudi citizens over the next 10 to 15 years with anchor projects, including the King Salman International Complex for Maritime Industries and Service in Ras Al Khair which will generate in the region of 30,000 direct and 50,000 indirect jobs.

The MOUs and commercial collaborations signed are:

1. MOU with Total to launch engineering studies to build petrochemical complex in Jubail, KSA.
2. MOU with Total regarding the potential establishment of a retail service station network.
3. MOU with Hyundai Heavy Industries regarding  potential HHI investments in King Salman International Maritime Complex for Industries and Services at Ras Al Khair.
4. MOU with Baker Hughes GE.
5. MOU with Schlumberger.
6. MOU with Halliburton.
7. MOU with Oilfield Supply Center.
8. MOU with Flex-Steel to invest in RTP reinforced thermoplastic pipe facility.
9. MOU with NPCC (National Petroleum Construction Company, UAE) to invest in a fully integrated fabrication yard and marine base.
10. MOU with SeAH Changwon Integrated Specialty Steel Co. to invest in localization of engineering steel.
11. MOU with GumPro (India) to invest in drilling chemicals facility.
12. MOU with Acwa Power (KSA) and Air Product (USA) regarding the Jazan Refinery gasification power project.
13. MOU with Sumitomo (Japan) regarding potential investments to upgrading PetroRabigh Refinery.
14. MOU with Norinco (China) regarding potential investments in refining and chemicals projects.
15. MOU with NOV (USA) to invest in manufacturing and repair of onshore rigs and equipment.

The Future Investment Initiative is an ideal platform to attract international investments and to capitalize on emerging new opportunities that are fast emerging with Vision 2030. Saudi Aramco is playing a pivotal role, alongside many national stakeholders, in enabling new industrial and business partnerships in the kingdom thanks to its position as a global energy powerhouse, and as reflected in our major investments and partnerships globally, not only in core oil and gas and downstream, but also in pursuing advanced technologies and energy-related value adding activities. 

Saudi Arabia’s infrastructure, both physical and digital, has witnessed an extraordinary advancement. This is integral to today’s advanced industrial activities. It attracts investors and enhances the fundamental competitiveness of the Saudi economy.