DAMMAM, Saudi Arabia- Saudi Aramco signed on Tuesday 13 memoranda of understanding (MOUs) worth around 6.3 billion riyals ($1.68 billion) with local and foreign companies as part a drive to expand the kingdom's industrial base and manufacture a bigger share of products domestically.
The agreements were signed on the sidelines of Aramco's In-Kingdom Total Value Add Program (IKTVA), a plan outlined by the state oil giant two years ago, aimed at doubling the percentage of locally produced energy-related goods and services to 70 percent of the total spent by 2021.
The IKTVA program is part of the company's aim to become more cost effective and commercially efficient.
The MoUs signed on Tuesday were with companies such as China's Sinopec, Dalma Gulf Drilling Co. and National Petroleum Technology.
Other agreements signed were part of the kingdom's plan to support the growth of small and medium enterprises (SMEs).
Aramco executives said earlier on Tuesday the company plans to raise its spending to $414 billion over the next 10 years, including on infrastructure and drilling, as the firm moves into new businesses. ($1 = 3.7502 riyals)
(Reporting by Reem Shamseddine; writing by Rania El Gamal, editing by Ed Osmond) ((firstname.lastname@example.org; +971 562 160 434; Reuters Messaging: email@example.com ; Twitter: ))