On 23 May 2017, Saudi Aramco as part of its In Kingdom Total Value Add (IKTVA) program signed several Memorandum of Understanding agreements with numerous American companies. IKTVA is a program established in 2015 and its primary scope is to achieve 70% localisation of Saudi Aramco's supply chain by 2021 (see related measure).
Consequently, indicating that the primary scope of these MoU agreements is to boost Saudi Aramco´s ability to procure most of its services, and goods locally.
The main GTA-relevant Memorandum of Understanding Agreements that were signed under the umbrella IKTVA program are:
- MoU between Saudi Aramco and General Electric: This Memorandum of Understanding established that General Electric in collaboration with Saudi Aramco, will engage in a project which core scope is to digitally transform Saudi Aramco in a manner which is expected to generate four billion US dollars in annual productivity improvements. The prior will be achieved through GE amongst others providing Saudi Aramco with its corporate pioneering APM, private Predix Industrial IoZ clout as well as a Digital Transformation Office with local Saudi engineers, process experts, and technologists. The Digital Transformation Office is according to the signed MoU expected to generate 250 Saudi high tech jobs as well as boost the local economic demand for 500 additional 500 jobs in the field of Digital Industry. Furthermore, as part of the signed MoU GE will also work within Saudi Vision 2030 in order to develop an educational program which core scope is to is to develop an educational curriculum for local Saudi universities as well as high schools. This Curriculum aims to primarily enable Saudi Digital talent to meet the country´s demand for developers and data scientists.
- MoU between Saudi Aramco and McDermott: This Memorandum of Understanding establishes that McDermott will expand its physical and human capital within the Saudi territory in order to support Saudi Aramco´s IKTVA program. Specifically, under this MoU McDermott has committed to a nine-initiative plan (which details are not elaborated in detail in official sources) which core scope is to increase its corporate contributions towards Saudi Arabia´s localisation efforts and Saudi Aramco 2021 IKTCA objectives. The signing of this MoU is expected to create 3000 jobs in Saudi Arabia.
- MoU between Saudi Aramco and Honeywell: The MoU will aim to explore new engineering capacities and systems in Saudi Arabia´s industrial centers. The prior is established with the scope of Honeywell supporting Saudi Aramco´s IKTVA 2021 objectives.
- MoU between Saudi Aramco and Schlumberger: The core scope of this MoU is for these two companies to deliver several projects aiming to localise oilfield goods and services within the Sudi territory. The MoU aims to create 2600 jobs as well as to support suppliers with significant funding.
- MoU between Saudi Aramco and Halliburton: The core scope of this MoU is for these two companies to deliver several projects aiming to localise oilfield goods and services within the Sudi territory. The MOU aims to create 750 jobs as well as to support services with significant worth.
- MoU between Saudi Aramco and Weatherford: The core scope of this MoU is for these two companies to deliver several projects aiming to localise oilfield goods and services within the Sudi territory. The MOU aims to create 900 jobs as well as to support suppliers with significant funding.
In addition to the above, Saudi Aramco as part of this initiative also updated its MoUs signed with Nabor and Rowan in 2016 (see related measure). The updates as per the information provided in official sources contain no changes passing the GTA de minimis criteria (compared to the initial MoUs signed in 2016).
The financial amount of these MoUs is estimated according to official sources to be circa USD 50 billion.
Saudi Aramco -- Saudi Aramco is the largest state-owned oil company of Saudi Arabia.
Schlumberger Limited (USA) -- Schlumberger is the world's largest oilfield services company.
Halliburton (USA) -- Haliburton is one of the world´s largest oilfield service providing companies.
Honeywell (USA) -- Honeywell is a multinational conglomerate that engages in providing engineering as well as aerospace services. Furthermore, this conglomerate also engages in the production of a variety of commercial and consumer products.
General Electric (USA) -- General Electric is one of the world´s largest conglomerates that operate in multiple industries such as oil and gas, financial services, engineering services, renewable energy, medical devices, transportation etc.