Saudi Aramco announced a new strategy for contracting in the company's existing projects in the oil and gas sectors and plant development projects, in light of expectations that the company will receive orders to purchase bonds worth $ 50 billion.
The strategy focuses on establishing new businesses and developing partnerships based on sustainability and new technologies, through mega projects by Saudi Aramco and awarding long-term contracts to prestigious and experienced contractors to improve cost efficiency, quality and safety of projects, according to Al-Sharq Al-Awsat newspaper.
"Signing these long-term agreements is part of our new strategy, which provides a number of advantages to Saudi Aramco and our partners, and will have a positive impact on the business environment and economic activities in the Kingdom," said Aramco's senior vice president of technical services, Ahmed Al-Saadi.
He added, "These agreements allow us to enhance the performance of our existing and developed projects, through new technologies and pioneering environmental sustainability principles, and at the same time improve contracting procedures and construction stages. In addition, these agreements will help us to continue developing local competencies in the Kingdom."
After Saudi Aramco approved the new contracting strategy, 8 companies were selected to undertake the work after a comprehensive evaluation process.
The agreements were developed with a special focus on improving Saudization, local content and supply chains through the IKTVA Enhancement Program.
The agreements stipulate the necessity of a commitment to use 39% of the local content and supply chains in the first period, provided that this percentage of commitment increases to 60% within 6 years.
At the same time, Aramco's net profit fell 48.6% on an annual basis during the first nine months of this year, driven by the pressure of declining oil prices and global sales during the outbreak of the Corona epidemic.
The company's net profit after zakat and tax amounted to 131.31 billion riyals ($ 35 billion), down from 255.71 billion riyals ($ 68.18 billion) in the corresponding period of 2019.
It is worth noting that global crude oil prices fell to their lowest level in two decades this year, as a result of a price war between Saudi Arabia and Russia, accompanied by a sharp drop in demand as a result of closing borders and economic facilities in most countries of the world. To prevent corona virus.
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