BUSINESS

Delivering a locally sourced supply chain

Aramco’s Iktva Conference ends with call to step up efforts to reach 70% localization by 2021

December 15, 2017
CEO Amin Nasser at iktva 2017 forum. — Courtesy photo
CEO Amin Nasser at iktva 2017 forum. — Courtesy photo

SAUDI Aramco on Thursday rung the curtain down on its annual flagship localization event, the iktva SMEs Forum and Exhibition 2017, with a call to continue the successful drive towards applying iktva principles to add value to the local supply chain and reach 70% locally supplied content by 2021.

The event saw a raft of MOUs and contracts signed with local suppliers and some international partners who have been at the forefront of implementing comprehensive iktva principles in their operations and partnerships.

Hosted by Amin H. Nasser, Saudi Aramco president and CEO, this year’s iktva welcomed Prince Saud Bin Naif, governor of the Eastern Province, Prince Ahmed Bin Fahad Bin Salman, deputy governor of the Eastern Province, Khalid Al Falih, minister of energy, industry & resources, and a number of global executives.

Having in previous years worked closely with large corporations and suppliers the event this year targeted SMEs in an effort to nurture the critical role they will continue to play in the Kingdom’s growth and specifically the work to reach its crucial 2030 strategic goals.

In his keynote remarks before an audience of over 2,300 delegates from 30 countries, Saudi Aramco President & CEO Amin H. Nasser highlighted the iktva program and the opportunities it offers to the local supply chain. Nasser said that iktva aims to deliver a world-class, locally sourced supply chain in the Kingdom with an overarching objective of achieving 70% of locally supplied content by 2021.

He said, “iktva aims to promote the added value in the supply chain, to encourage local manufacturers to invest in R&D, and to develop the talent and human resources in the Kingdom. We are very pleased to support iktva plans and we believe that the increasing adoption of iktva principles is clear evidence that we are well positioned to achieve the 2021 objectives.”

Nasser also indicated that Saudi Aramco was on course to end the year with a local purchase rate of 50%, which translates to SR 13 billion.

With the spotlight on SMEs, their essential contribution to the Kingdom’s strategic Vision 2030 plan was a key discussion point at the two day event and in further efforts to embed iktva principles, a series of workshops and panel discussions examined the opportunities for investments in local supply chain businesses and activities.

In one of the highlights of the conference, a number of excellence awards were presented by Prince Saud. These awards recognized excellence in the application of iktva principles. They were presented to Schlumberger for ‘Best Overall iktva Performance’, Azmeel Contracting for ‘Most Improved iktva Performance;’ Arabian Drilling Company for ‘Best in Training & Development;’ Halliburton for ‘Best in SME Development.’

Meanwhile, winners of the ‘Best SMEs’ award were Global Company for Downstream Industries (GDI), Innosoft, and AZR Technologies.

In further iktva inspired developments Saudi Aramco signed a suite of MOUs with companies seeking to enhance and develop their application of iktva principles with 5-year plans.

• Saudi Aramco and Technicas Reunidas signed an MOU to execute a 5-year iktva plan.

• Saudi Aramco and SNC-Lavalin signed an MoU to initiate the execution of SNC–Lavalin’s 5-year iktva plan and to boost the localization of critical “craft construction services”, support localization efforts and develop Saudi engineering talent.

• Saudi Aramco and Sinopec signed an MOU to initiate the execution of Sinopec’s 5-year iktva plan to work towards increasing the numbers of new job creating Saudi enterprises.

• Saudi Aramco and National Petroleum Technology (NPS) signed an MOU to initiate the execution of NPS 5- year iktva plan entailing two major projects in partnership with local and international world class manufacturers and the development of training opportunities for Saudi talent.

• Saudi Aramco and Taqa signed an MOU to initiate the execution of Taqa’s 5-year iktva plan and to enhance the security of supply and boost job creation among young Saudi talent.

• Saudi Aramco and Dalma Gulf Drilling signed an MOU to initiate the execution of Dalma’s 5-year iktva plan focusing on the hiring and development of Saudi talent.

• Saudi Aramco and Zamil Offshore signed an MOU to initiate the execution of a 5-year iktva plan and to expand and develop their assets and human capital within the Kingdom.

• Saudi Aramco and Advanced Electronics Company (AEC) signed an MOU to execute a 5-year iktva plan highlighting their intention to increase spend on local goods and services and increase Saudization.

Saudi Aramco also signed contracts with a total value of SR390 million with a number of local suppliers and also signed an additional SR6.3 million contract with oilfield services company Schlumberger.

Saudi Arabia Smart Grid Conference & Exhibition’

Saudi Aramco participated as a sponsor at the 2017 Saudi Arabia Smart Grid (SASG) Conference and Exhibition held in Jeddah, under the aegis of Al-Falih. Saudi Aramco’s sponsorship of SASG 2017 stems from a firm commitment to its role as one of the key institutional drivers of growth in the Kingdom and a senior contributor towards achieving the aims of Saudi Vision 2030.

As the Kingdom’s premier energy provider, Saudi Aramco exhibited a range of its power systems applications, smart grid technologies and renewables. A significant number of the company’s engineers attended throughout the Conference & Exhibition to present a suite of workshops. In its exhibition booth, Saudi Aramco showcased examples of its advanced technologies and applications in producing clean energy which include the first wind turbine in Turaif and the cybersecurity gate passes implemented on some of the company’s power plants.

During the opening ceremony, Abdulhamid Al-Omair, manager of power systems engineering, underscored Saudi Aramco’s determination to operate at the cutting edge of power sector innovation and technology. Addressing the assembled experts and exhibitors he said, “When we realized that the global power sector was going to maintain its march towards digitization we decided to take a leading role in this transformation or, at the very least, seek to become a significant player in this area.”

He added, “Based upon our belief in the growing impact of digitization on the power sector, Saudi Aramco is in the process of creating a control center designed to enhance and facilitate the implementation of artificial intelligence in the power sector. The system will build complex predictive models and analyze instantaneous data from all over the network. This will provide a robust and reliable forecasting and critical decision-making process which will operate in record time and pave the way for a significant uplift in operational efficiency across the network.”

Al-Omair also provided an optimistic assessment of the future integration of energy sources citing energy conservation as a major gain and the future use of 60000 smart devises across the 1000 strong electric power network. During his presentation, Al-Omair explained the precise nature of Saudi Aramco’s continued support for local power sector capabilities. This includes Saudi Aramco’s 10% contribution to power generation in the Kingdom. The company plans to develop these facilities and has started to deploy advanced technologies to increase efficiency in power production with a goal of expanding its power generation projects to reach more than 12,000 megawatts by 2020.

As part of the company’s commitment to support wider infrastructure and technology development, Saudi Aramco is promoting the use of advanced technologies, ramping up the development process and supporting partner and main stakeholders in the Kingdom. This commitment is visible through Saudi Aramco’s network of strategic partnerships both in the Kingdom and elsewhere.

In addition, Saudi Aramco has developed collaborated projects with government organizations, industrial partners, and academic establishments, including the establishment of the GCC Electrical Testing Laboratory. Elsewhere, Saudi Aramco is developing the national project of clean combustion testing alongside national partners and businesses with the goal of applying and promoting renewable technologies in a concerted effort to enhance energy efficiencies.

In similar work, Saudi Aramco worked alongside nine international and local partners to create a national power academy. This collaboration has seen Saudi Aramco develop its Power Systems and Training & Development capacity, in partnership with The Technical and Vocational Training Corporation and the Colleges of Excellence. This partnership has given rise to a new agreement with King Abdullah City for Atomic and Renewable Energy, the Saudi Council of Engineers, the GCC Laboratory, and Bismarck Colleges, which aims to enhance the Academy’s vocational and professional training. — SG


December 15, 2017
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