Aramco and KBR sign supply chain development MoU
Saudi Aramco and Kellogg Brown & Root have reached a deal to develop an effective and reliable local supply chain in the Kingdom
Saudi Aramco has signed an agreement with Kellogg Brown & Root to develop an effective and reliable local supply chain through its In-Kingdom Total Value Add (IKTVA) programme.
Hosted by Saudi Aramco president and CEO Amin Nasser, the memorandum of understanding (MoU) signing is the latest major milestone for the ambitious IKTVA programme, reported TradeArabia.
The deal 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% of its procurement spending within the kingdom’s supply chain by 2021.
Amin Nasser and KBR’s president and CEO, Stuart Bradie, signed the MoU in the presence of Aramco’s Technical Services senior vice president Ahmad A. Al Sa’adi; Procurement and Supply Chain Management acting executive director Mohammed Al Shammari, as well as KBR’s president of Engineering and Construction for the Middle East and North Africa, Jay Ibrahim.
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 deal also contains provisions for business development, in which both parties can seek opportunities to expand their current business relationship.