doing business

with Saudi Aramco

With transparency, consistency and
uniformity, it’s a level playing field for all.
2 doing business with Saudi Aramco 3

content
01 Overview

02 Corporate values

03 Code of conduct and safety

04 The In-Kingdom Total Value Add

(iktva) program

05
Disclaimer: The information contained herein is made available to the public by Saudi
Aramco, and is provided “as is.” Saudi Aramco makes no representations or warranties,
express or implied, as to the correctness, completeness, or use of this document or the Supplier relations
information therein by any party for any purpose whatsoever. Neither Saudi Aramco nor
any of its affiliates shall be liable for any direct, incidental, consequential, or punitive
damages arising out of or in any way connected with the information herein. Use of, or

06
reliance on, the information contained in this document does not create any binding or
legal or other obligations on Saudi Aramco toward any other party. Reference herein to
any specific organization or company does not constitute or imply Saudi Aramco’s
Procurement policies and
endorsement or recommendation of, or preference toward, such entity. registration procedures

07 Contracting policies and registration

procedures
01
4 doing business with Saudi Aramco 5

about A world leader in hydrocarbons

exploration, production,
The core strategies of our
Procurement and Supply

Saudi Aramco refining, distribution, and

marketing, and the world’s top
exporter of crude oil and natural
Chain Management
organization are to:

gas liquids, Saudi Aramco’s • Maximize value added to

operations encompass the entire stakeholders.
energy industry value chain. • Promote and expand the value
Saudi Aramco also produces, of local content.

overview
processes, and delivers supplies
of natural gas that fuel Saudi • Develop innovative supply
Arabia’s industrial sector. The chain methodologies.
Company has an array of • Raise the percentage of locally
international subsidiaries, joint
produced energy-related
and equity ventures to deliver
crude oil, refined products, and goods and services contracted
chemicals to customers by Saudi Aramco to 70% by
worldwide. Our Procurement 2021.
and Supply Chain Management • Develop and retain a
organization (P&SCM) is professional workforce.
responsible for procurement in
support of Saudi Aramco.

booklet This booklet is intended to help

build strong relationships
booklet guides potential
vendors, manufacturers, and
between Saudi Aramco, contractors on how to join the
vendors, manufacturers, and Saudi Aramco supply chain.
contractors, and to encourage
the implementation of supply
chain management best
practices. The booklet provides
an overview of Saudi Aramco’s
efforts to help create long-term
economic growth and
diversification through its
In-Kingdom Total Value Add
(iktva) Program. Finally, the
02
6 doing business with Saudi Aramco 7

our values Saudi Aramco adheres to a set of values that also guide
our procurement activities. Similar values are expected
from suppliers and contractors supporting our supply
chain activities. Similar values are expected from
suppliers and contractors supporting our supply chain.

corporate
values
We drive for the best We operate safely and We follow ethical
results and are agile in are committed to the standards in
addressing new well-being of our conducting our
challenges. workforce. business.

We take responsibility We are a positive

for our actions and for influence on the
meeting corporate Kingdom, its environment,
objectives. and in the communities
where we live and work.
03
8 doing business with Saudi Aramco 9

Supplier code Saudi Aramco is committed to

conducting its business in an
of conduct ethical manner, and requires its
suppliers and contractors to
share these commitments. We
therefore established a Supplier
Code of Conduct. All registered
vendors, manufacturers,
contractors, and sub-contractors
doing business with Saudi
Aramco are required to

code of
acknowledge, and agree to
abide by, the policies and
principles set forth in the
Supplier Code of Conduct to
continue doing business with

conduct
Saudi Aramco. The Supplier
Code of Conduct also applies to
all potential new vendors,
manufacturers, contractors, and

and safety
sub-contractors. Our suppliers
and contractors are expected to
provide the Supplier Code of
Conduct to all employees in their
organizations who are involved
in conducting business with
Saudi Aramco.

Saudi Aramco’s Saudi Aramco has a long and

proud heritage of promoting
together to create and maintain
a safety-oriented culture with

safety culture safety as a value and way of life.

P&SCM encourages our
suppliers, contractors, and
zero tolerance for unsafe actions
or behaviors.

manufacturers to embrace the

conviction that “All incidents are
preventable.” We encourage all
supplier and contractor
employees to establish safety as
a personal priority while in the
workplace, on the highway, or at
home. We all must work
04
10 doing business with Saudi Aramco 11

what is iktva? Saudi Aramco has created the

In-Kingdom Total Value Add
To learn more
Email iktva@aramco.com
(iktva) Program to position local
content at the heart of our
Website iktva.sa
procurement process. The
program’s goal is to increase the
production of locally
manufactured energy-related The iktva program requires our
goods and services to 70% and suppliers to self-report qualitative
increase the export of Saudi- and quantitative information that

The In-Kingdom
made energy goods and services falls into seven major categories:
to 30% by 2021. Development Revenue, Goods and Services,
of the Saudi workforce is also Saudi Payroll Related Costs,
one of the primary goals of the Saudi Training and Development,

Total Value Add

program. Saudi Supplier Development,
Research & Development, and
The iktva program will create a Export. From this data, we
baseline for, and measure and calculate an iktva ratio that
support, increased levels of approximates the percentage of

(iktva) Program
localization in the Kingdom. The our spending that remains
program is designed to promote in-Kingdom or develops the
local content development, Kingdom’s supply chain and
leading to higher levels of capabilities. Saudi Aramco
Saudization and local spending requires third-party verification
to boost the Kingdom’s of the numbers as part of
economy, capabilities, and suppliers’ annual submission.
supply chain.
12 doing business with Saudi Aramco 13

iktva measurement tool iktva is • A Saudi Aramco strategic

imperative, which works with
Opportunities
• Diversified local Saudi
suppliers in a new way for
economy
mutual benefit.
Saudi Aramco supplier • Better trained, qualified Saudi
iktva metrics • A value-creation program, not
workforce
a metric.
Through iktva, we aim to foster a • Export your local content to

A B C globally competitive Saudi

industrial base to deliver our
targets:
neighboring GCC markets

Localized goods Salaries paid to Training and

and services Saudis development of Creating a level playing field
Saudis
• Uniform evaluations (services
and materials)
• Access to information
• Supplier Solution Center

D R E Partnership and
collaboration
Supplier Research & Revenue (spend
development spend development from Saudi • Supplier focused
Aramco) • Jointly develop action plans
• Mutual benefit and
commitment

X Export Factor
iktva support The iktva Support Team
combines the roles of supplier
supplier iktva formula Team performance monitoring and
proactive supplier development.
The team is designed to ensure
A+B+C+D+R an increase in the local supply of
% iktva = +X goods and services to Saudi
E Aramco by coordinating
technical assistance for suppliers.
iktva defines the net value generated for the Kingdom The Team can be reached
through:

Email: iktva@aramco.com

Additional info
• Number of Saudi employees
• Investment
• Exports
14 doing business with Saudi Aramco 15

iktva supplier Our engagement framework

is designed to drive active

engagement engagement though:

program • iktva certification

• iktva 5-year action plan
• Procurement award and
monitoring

Engagement framework
iktva certification > iktva 5-year action plan > procurement award and monitoring

• Measure the local footprint of • Detailed plan on increasing • Quarterly status update
a company the iktva score in the next five • Annual progress review
• Yearly certification years.
• Enforcing accountability
• Carried out by a third-party • Established targets on measures.
certifier Saudization and investment
• Summary of major sector
enablers and challenges
05
16 doing business with Saudi Aramco 17

suppler Suppler Relationship

Management’s (SRM’s) goal is
Whether your firm is large,
medium, or small; whether your

relationship to develop mutually beneficial

relationships that will allow us
and our suppliers for goods and
relationship with Saudi Aramco
is new or long-standing, we
want to share business success
services to attain the highest with you in the future.
level of excellence. We have
always worked successfully with
local and international
businesses – from contractors

supplier
providing us with services, to
suppliers offering their
materials.
Saudi Aramco expects its

relations
suppliers to offer the highest
level of quality standards, be
innovative in their products and
services, be competitive in their
prices, and deliver on time. In
addition, Saudi Aramco is
looking for suppliers that add
value to its supply chain and
have the ability to scale-up to
meet growth changes according
to business needs.

How to The Saudi Aramco Supplier

Help Desk is a one-stop shop

reach us to handle all suppliers’

inquires and issues. Service
providers (contractors) and
material providers can call
the Supplier Help Desk at:

Tel: +966 13 874-2222

Email: SupplierHelpDesk@
aramco.com
(Regular business hours, 07:00
to 16:00 KSA time, Sunday
through Thursday).
18 doing business with Saudi Aramco 19

what SRM SRM’s function is crucial in

strategically planning for and
Registration and
qualification:

offers managing all interactions with

the suppliers who provide
goods or services to Saudi
Responsible for registration of
suppliers as well as coordination
with the concerned
Aramco, and to maximize the organizations within Saudi
value of those interactions. Aramco for suppliers’
qualification.
Our thrust is to have suppliers
relationship a focal point for all
interactions with the supplier’s Suppliers’ performance:
community, providing Monitoring suppliers
comprehensive services to performance as well as
them, help them well-perform collaborate with internal
and support them to develop stakeholders to improve

our relation
and prosper. This interaction will suppliers’ performance.
The business relationship Suppliers interested to do
ensure the values that we are
between Saudi Aramco and business with Saudi Aramco are

focus
looking from timely delivery, Supplier relations:
Dedicated to promoting the suppliers and contractors required to be registered and
high quality and reliability along
iktva program as we handle requires a sustained qualified as a first step.
with of course strong
relationship. external relations with suppliers. commitment to continuously
The following section will outline
improve service and efficiency.
the requirement for Saudi
SRM handles five main areas of P&SCM has implemented
Supplier Solutions Center: Aramco registration:
supplier interactions, including effective supply chain strategies
Dedicated to the development
the following: and industry best practices as Supplier Registration:
of existing local manufacturers
part of its everyday procurement
and expanding their capabilities. Our Saudi Aramco Supplier
activities.
Registration Office in Dhahran,
Together, suppliers and Saudi Arabia, acts as the single
Saudi Aramco provide point-of contact for supplier
consistent value and service registration inquiries with Saudi
by: Aramco.
• Developing value-added The Saudi Aramco Supplier
relationships and greater Registration Office is responsible
levels of trust for Suppliers located in Saudi
• Delivering greater customer Arabia, United Arab Emirates,
Bahrain, Qatar, Kuwait, Oman,
satisfaction
Yemen, Iraq, Jordan, Syria,
• Reducing inventory Lebanon, Egypt, Iran, Sudan,
throughout the supply chain Somalia, Kenya, Pakistan,
• Conducting joint process Bangladesh, and Afghanistan.
Suppliers located in countries
improvement meetings
other than the countries listed
• Deploying technology above should contact the proper
effectively Supplier Registration Office listed
• Sharing information under International Suppliers
section.
• Implementing cost reduction
opportunities The Supplier Registration
Approval Process starts with the
• Continuously improving all Supplier submitting a registration
supply chain management request through our
practices. e-Marketplace platform SAP
20 doing business with Saudi Aramco 21

Ariba. Once a complete package

is received, a dedicated SRM
7. A valid copy of the Gener-
al Organization for Social supplier agency To link an approved local vendor
to qualified sources of materials
Manufacturer Qualification

Analyst will review and validate

all required documents. Upon
approval, the Supplier will be
Insurance (GOSI) Certification
referencing the CR num-
ber under registration and
linkage (manufacturers), the following
conditions must be provided to
become a Saudi Agent
The Manufacturer Approval
Process starts once the
manufacturer registration has
issued Saudi Aramco Vendor ID Saudization Letter from the registered in the Saudi Aramco been completed and the
(100xxxxx). It is important to Labor Office.* supplier database: manufacturer has obtained a
note that registration as a Saudi Vendor ID via our e-Marketplace
8. A valid copy of the Civil 1. Vendor shall be a Saudi platform SAP Ariba. A Saudi
Aramco supplier does not Defense License or an equiv-
guarantee future business with Agent of an approved Saudi Aramco SRM Account Manager
alent government License.* Aramco manufacturer. will be assigned to review the
Saudi Aramco. The registration
9. A valid copy of the Chamber 2. Vendor shall provide a Com- manufacturer’s registration
process merely establishes the
of Commerce & Industry mercial Agency Registration package and develop,
Supplier with Saudi Aramco and
Membership Certification.* Certificate. accordingly, a Technical
identifies primary contacts and
other basic information about 10. Contractor Government Qualification Questionnaire. The
3. Vendor shall provide an
your company. Classification, if applicable manufacturer will be required to
authenticated Appoint-
(Service Providers only). submit additional Technical and
ment Letter from the Saudi
Registration Requirements 11. A letter from the bank Quality packages, based on SRM
Aramco-approved manufac-
with which the company is Account Manager evaluation.
1. Original Acknowledgment turer detailing the agency
form of Saudi Aramco’s dealing, stating the type of agreement. After reviewing and validating all
Suppliers Code of Conduct. service that the bank normal- technical and quality
This form must be signed ly provides to your company requirements, the SRM Account
by an authorized company and relationship status. Manager will initiate parallel
representative, certified with 12. A valid copy of the owner’s workflows to responsible
a MANUFACTURER business National ID or Iqama ID technical and quality entities for
stamp, and authenticated for an individual owner Our Supplier approval. Manufacturers may,
by the appropriate Saudi (Establishment) or the up-to- require a plant site visit by Saudi
Arabian regional Chamber date company’s Articles of Relations and Aramco inspectors to assess
of Commerce. Association (Organization). Qualification Unit implementation and
2. A valid copy of the Com- For Saudi organizations that effectiveness of the
mercial Registration (CR) are owned by at least one (SR&QU) is the manufacturers’ quality
Certificate. or more organization. Please single point-of management system and
provide each organization’s conformance with ISO 9001
3. A valid copy of the Industrial up-to-date company’s contact for local
License Certification (Manu- standards. Saudi Aramco
Articles of Association and inspectors may also evaluate the
facturers Only). Commercial Registration (CR) manufacturer manufacturer’s capabilities to
4. A valid copy of the Saudi
Arabian General Investment
Certification. and supplier produce materials/equipment
13. Authorized Signatory which meets Saudi Aramco’s
Authority (SAGIA) Certifi- Letter identifying Authorized registration. material specifications. Any
cation for entities owned Company Employees dealing corrective action that may be
full or partially by a foreign with SA. required will be reported to the
investor(s) or a foreign orga- manufacturer’s management.
nization(s).*
5. A valid copy of the Zakat * Note-1: The document is upon approval of both the
Certification issued by the applicable and required for Saudi technical and quality entities, be
General Authority of Zakat & Arabian suppliers. qualified and linked to selective
Tax (GAZT).* Saudi Aramco material numbers
** Note-2: The document is (9COMs). The manufacturer
6. A valid copy of the Value
applicable and required for Saudi becomes an approved and
Added Tax (VAT) Certification
Arabian suppliers and suppliers qualified source of supply. It is
showing the VAT ID issued
located in countries of the Gulf important to note that
by the General Authority of
Cooperation Council (GCC). registration and qualification as a
Zakat & Tax (GAZT).**
Saudi Aramco supplier does not
guarantee future business with
Saudi Aramco.
22 doing business with Saudi Aramco 23

technical 1. Company Profile

(Overview).
The Sourcing & Prequalification
Group of Saudi Aramco’s
requirements 2. Product Catalog - detailing
each product Technical
Contracting Department is
responsible for supporting
proponent organizations within
Specification.
Saudi Aramco by developing
3. For chemicals, MSDS,
General Bid Slates for various
Product Specification
services required by the
Sheet, Certificate of
proponents. The Group is also
Analysis, Country of Origin.
responsible for sourcing,
4. Manufacturing Facilities prequalifying and placing
Design Overview (Shop contractors on these General Bid
Layout). Slates for consideration in future
5. Manufacturing Production contract procurement actions.
Flow Chart.
To see examples of these
6. List of Key Manufacturing
General Bid Slates and
Equipment Installed at the
contracting opportunities with
Manufacturer Plant.
Saudi Aramco, please visit the
7. List of Key Manufacturing Saudi Aramco website’s

qualification Quality Requirements 7. A complete company

organization chart including
Raw Materials
8. Resume (CV) of the
suppliers section for further
details.

requirements 1. An uncontrolled copy of the

quality management system
manual.
all QA/QC staff names.
8. A list of of key
Production Manager
explaining his
qualifications.
Contractors may request to be
considered for prequalification
manufacturing equipment and inclusion on General Bid
2. Copies of the mandatory at the manufacturing 9. List of major users (with
Slates for specific scopes of work
quality systems procedures facility. contact person address)
by contacting the group at
as required by ISO 9001: for each product List of
9. The number and contractor-prequal@aramco.
Sub-vendors with itemized
• Control of documents certifications of welding com.
supply scope.
• Control of records and NDT QC Inspectors.
10. Compliance Letter to Contractors’ overall safety
10. Qualification of QA and QC Saudi Aramco Engineering provides valuable insight into
• Control of nonconforming
Managers. Specifications/Standards their safety culture awareness
products
11. Factory location map. and equivalent Procedures. and quality of work. Therefore,
• Internal audit and in line with Saudi Aramco’s
• Corrective action Corporate Values, contractors
*Note: We recommend that all shall be requested to submit a
• Preventive action manufacturers should review the separate pass/fail Safety
3. A copy of the ISO Engineering Requirements for Prequalification to evaluate their
9001:2008 or later Technical & Quality Approval safety program and safety
certificate. (ERTQA) Handbook before performance to be included on
4. Minutes of a recent submitting a registration General Bid Slates.
Management Review request.
Meeting. Contractor Prequalification
5. A recent ISO registration
Surveillance Audit Report. To support our role as a leading
supplier of the world’s oil and
6. A Complete list of
gas markets, Saudi Aramco
QMS procedures/work
partners with contractors for a
instructions/exhibits.
wide range of services and has
opportunities for contractors of
all sizes.
24 doing business with Saudi Aramco 25

registration as Manufacturers wishing to

become an approved Saudi
Concerned Saudi Aramco
organizations will review the international Suppliers wishing to become an
approved Saudi Aramco vendor,
financially and technically
acceptable. International

an international Aramco supplier, or existing

Saudi Aramco approved
plant’s technical documentation
and QMS manual when it is vendors or existing international
suppliers offering additional
suppliers who demonstrate their
products offer significant

manufacturer international manufacturers

offering additional products,
should communicate to the
determined that the factory is
ready for comprehensive
inspection. Pending satisfactory
products, should communicate
to the appropriate affiliated
company, located in their
technical or commercial benefit
to the Company will be closely
considered.
appropriate affiliated company, completion of this review, an geographical area (see the
located in their geographical official plant survey will be Contact Information table). The
area (see the Contact scheduled. The official survey affiliate will evaluate the
Information table). The affiliate findings will be communicated information provided and
will evaluate the information to the plant’s management determine whether there is a
provided and determine noting any deficiencies requiring business need for additional
whether there is a business corrective action. If results of products/suppliers. Any further
need for additional products/ the plant survey are acceptable, evaluation will depend on
suppliers. notification in the form of an whether the supplier is deemed
approval letter will be sent to
The registration documents will the plant’s management
be forwarded to strategic indicating approval for specific
sourcing for evaluation in terms products and providing a unique
of technical, financial, and vendor identification number. It
strategic needs. Once our
supplier
is important to note that
Industrial Development & registration as an approved Material Supplier Guide ERTQA Handbook
Strategic Supply Department

resources
manufacturer with Saudi Available from the Saudi This Engineering Requirements
decides that the applying Aramco is not a guarantee of
manufacturer is a potential Aramco website, the newly for Technical and Quality
future business. developed Material Supplier Approval (ERTQA) handbook
source, the approval process will
be initiated. Guide provides suppliers with has been developed by Saudi
details on how to register and Aramco Engineering Services
update their records, and what (SAES) to provide clear approval
systems and support are guidelines for new and existing
available. In addition, the guide local manufacturers of
includes information about engineering commodities. The
materials delivery and payment handbook includes approval
terms. requirements based on Saudi
Aramco (SA) and industry
Note that the Material Supplier applicable standards, as well as
Guide is subject to change and ISO 9001 Quality Management
will be updated frequently and System (QMS) requirements.The
republished as necessary. ERTQA handbook can be
How to download the downloaded from:
Material Supplier Guide: www.iktva.sa > Download >
1. Open your Internet browser Guidelines
and go to our website:
saudiaramco.com
2. Select the “Working with us”
tab
3. Select “Resources”
4. Go to “Material Supplier
Guide” and click on the link
to download the guide as a
PDF document.
26 doing business with Saudi Aramco 27

Saudi Aramco Saudi Aramco is increasingly

using e-Procurement as a means
Supplier Declaration • Sustain high supplier
performance: The SPU will
• Adapt industry best practices
and technologies for supplier
Supplier Portal of conducting transactions and
enabling real-time tracking of
key procurement information.
All suppliers (in-Kingdom and
Out-of-Kingdom) must attest to
the accuracy and completeness
monitor the suppliers that
perform well to ensure that
performance monitoring
• Collaborate with internal
of all documentation and they continue to excel. This stakeholders (buyers,
The Saudi Aramco supplier submittals to ensure information will be achieved by helping customers, vendor inspection
portal is the electronic gateway provided is correct, up to date, the supplier to identify and and consulting services) to
between us and our suppliers and accurate. overcome obstacles in a timely improve supplier performance
and increases the quickness and manner. SPU will also
accuracy of key supply chain Noncompliance will delay the • Evaluate, measure, and
registration process, and implement a recognition and
information between monitor supplier performance
submittal of fraudulent or incentive program to
stakeholders. All registered through supplier scorecards
suppliers should maintain a forged information will be propagate high performing
grounds for indefinite (key performance indicators,
high-speed Internet connection suppliers.
suspension from bidding on or (KPIs)
to facilitate access to the Saudi • Performance enhancement
Aramco supplier portal and have work from Saudi Aramco. • Set protocols to inform the
of low performing
the capability to provide and Any changes in company suppliers of their performance
suppliers:
manage Web-based catalogs. ownership, commercial and maintain a positive
The SPU, in collaboration with
activities, and/or contact reinforcement environment to
• Evaluate, measure, and internal stakeholders, will
information by registered encourage optimum
monitor supplier performance closely monitor low
suppliers, whether they are performance
through supplier scorecards performers to identify root
vendors or manufacturers,
(key performance indicators, causes and agree on corrective • Coordinate and participate in
should be communicated.
or KPIs) Suppliers’ representatives are actions to boost performance. process improvement
encouraged to share the guide initiatives
• Set protocols to inform the
with their colleagues and staff
suppliers of their performance The SPU holds primary
who deal with different
and maintain a positive organizations in Saudi Aramco. responsibility for the
reinforcement environment to performance monitoring of
encourage optimum Supplier Performance our supplier base. Within
performance P&SCM, the SPU focuses on
Because supply chain
the following roles and
• Coordinate and participate in management is a key success
responsibilities:
process improvement factor for us, we have an
initiatives established team to sustain high
supplier performance and to
All supplier portal access enhance the performance of
requests, Technical Questions low performing suppliers. The
should be forwarded to: Supplier Performance Unit (SPU)
Tel: (013) 874-2222 is chartered to ensure a portfolio
of best-in-class suppliers to
Email: supplier-portal@ support our operations. The
aramco.com evaluation of supplier
performance can lead to
Suppliers must immediately
developing suppliers to increase
notify Saudi Aramco of the end
their potential for reducing
of service for any employee who
costs, mitigating risks, driving
has been granted access to the
continuous improvement, and
Saudi Aramco supplier portal.
increasing agility.
SPU has two specific goals for
creating a portfolio of reliable
suppliers
06
28 doing business with Saudi Aramco 29

Procurement We pursue best practice

solutions for developing reliable
Key supply chain strategies

policies suppliers to obtain the best

value, quality, and supply chain
security. These objectives are
To promote the development
of local sources of supply
while achieving Saudi
achieved through a variety of Aramco’s commercial
strategies, including agreement- requirements, P&SCM
based procurement, cost- pursues a number of key
effective, long-term supply supply chain strategies:
contracts, supplier managed • Competitive bidding enables
inventory programs, and

procurement
transparency and upholds the
innovative solutions such as
corporate level agreements to commercial interests of both
consolidate spend on materials, Saudi Aramco and the local
spare parts, and services. The manufacturer/supplier

and contracting
continued focus is to support community.
the growth of Saudi Arabia’s • Where appropriate, the total
national economy by
cost of ownership will be the
encouraging in-Kingdom
manufacturing and the basis for selection, rather than
development of local stocking initial acquisition price.

policies and procedures distribution to ensure strong,

reliable local suppliers.
• “Made in Saudi Arabia” is in
our commercial interest and is
Local content focus essential to the long-term
growth and economic
We envision local well-being of the Kingdom,
manufacturing expanding to
and will be accomplished via
provide a significantly greater
percentage of our material promotion of foreign direct
requirements, with local stocker investment and support of
distributors providing the local in-Kingdom
greatest portion of the balance. manufacturing
These close relationships will • Utilizing and supporting
foster continued development
best-in-class suppliers
of our national supply and
service base to become top • Expanding purchase
echelon providers within the oil agreement coverage through
and gas industry – key enablers cost-effective, lean
Made in Saudi of our continued success. procurement practices
Arabia” is Capital program sourcing • Increasing national logistics
essential to the A large percentage of the
and warehousing capabilities
long-term materials and services required • Maximizing e-Procurement
to support our capital program and e-Content
growth and and various joint venture
• Developing local supply chain
economic well- partnerships is sourced from
global lump sum turnkey (LSTK) management skills and the
being of the contracts. For information on expertise of our P&SCM
supply chain opportunities in personnel, our customers,
Kingdom these areas, communicate and our suppliers
directly with the respective
contractor.
30 doing business with Saudi Aramco 31

Purchasing guidelines • Focusing on the total cost of

ownership
Our role in fostering the
development of the national • Encouraging Saudization of
economy is closely associated the workforce All aspects of
with the evolving capabilities of
the domestic market to
Supplier contribution every contractor
effectively support our Suppliers represent an screening inquiry
requirements for materials, integral part of our supply
products, and services on a chain by: and Invitation for
competitive basis.
• Adding value through product Proposal are
Our sourcing activities are
governed by the following:
quality and support, confidential.
competitive pricing, and a
• Conducting all purchasing focus on lean supply chain
transactions fairly, honestly, models
with high integrity, and in • Utilizing enabling
accordance with the highest technologies that allow We encourage the continuous Confidentiality
ethical standards and all supply chain participants to development of a strong,
broad-based local contractor Saudi Aramco considers all
applicable laws effectively access relevant aspects — bid documents,
supply chain information community in our various areas
• Considering quality, delivery of operations for optimal attachments, and drawings
and price, reliability of • Supporting effective commercialization. In support of — of every contractor screening
vendors, operational costs, development and training this policy, we distribute contract inquiry and Invitation for
in-Kingdom after sales work as widely as possible Proposal to be confidential. A
programs for their employees
among qualified Saudi Arabian contractor must agree before
support, end-use cost, work • Seeking new opportunities for
contractors. responding to a screening
simplification, and local manufacturing inquiry or bidding on Saudi
standardization in making Local (in-Kingdom) Aramco work to limit the
placement decisions • Building a robust information
contractors disclosure of information to only
technology infrastructure with those employees who require it,
• Procuring goods from e-business transaction We require current, up-to-date
financially and technically either to respond to an inquiry
capability. details on our contractors. or to prepare a bid.
qualified and reliable sources Contractors that are new to
Saudi Aramco may register their Contractors must also agree not
interest through the Saudi to disclose any information
Aramco Registration website contained in a screening inquiry
through SAP Ariba System. The or an Invitation for Proposal to a
registration process provides us third party without obtaining
with current contact Saudi Aramco’s prior written

contracting The following policies are

highlighted for your
• Lump sum contracting is
information and other basic
data about contractors.
approval. In this regard, a
contractor may be required to

policies
normally the preferred sign a confidentiality
attention: contract form when it can be International contractors agreement.
• Saudi Aramco policies used properly
Contractors that wish to do
regarding business ethics • For work to be performed in business with us should
must be adhered to and a Saudi Arabia, Saudi Aramco communicate their interest with
high standard of ethics and will normally consider the appropriate Saudi Aramco
fairness shall be maintained contractor’s technical and affiliate company — ASC, AOC,
financial qualifications and or AAC — located in their
• All contracts must be in geographical area. See the
writing and shall be executed will award contracts to only
Contact Information table for
before committing work to a those contractors who are details.
contractor, or a contractor properly registered or licensed
starting work to conduct business in Saudi
Arabia
32 doing business with Saudi Aramco 33

Contractor sourcing and Saudi Aramco contract then select those contractors Treasury organization, which are located in Dhahran at North
prequalification procurement process considered most capable of maintains all financial Park II, Building 3301,
performing the work. We information in strict confidence. Contracting Department’s
To support our role as a leading The contract procurement use this method when it is Reception Center, Room #A162.
supplier of the world’s oil and process is described in the determined that the contract Job Explanation Meeting Bids must be submitted in
gas markets, Saudi Aramco following section. requirements are so stringent duplicate and clearly labeled in
partners with contractors for a Communications during all A Job Explanation Meeting (JEM)
that only a few contractors is held to explain the contract, accordance with the
wide range of services and has stages of contract procurement qualify, or when the high instructions.
opportunities for contractors of between bidders and Saudi describe the scope of the work,
cost of preparing a bid indi- and to answer any questions
all sizes. The Sourcing & Aramco must be authorized and cates that the size of the bid In many cases, bidders are
Prequalification Group of Saudi conducted by the Saudi Aramco concerning the contract or the requested to submit two
slate should be limited. procurement process. If possible,
Aramco’s Contracting Contracting Department. separate proposals: a technical
Department is responsible for 4. Sole Source: We do not favor the complete bid package is proposal and a commercial
supporting proponent Bid slate development this method of contract pro- distributed to the bidders for proposal. In these instances, the
organizations within Saudi curement, and it is used only review before the JEM. The bid bidder’s technical proposal is
We use four different after a careful review of the package consists of a pro forma
Aramco by developing General methods for procuring evaluated first and the bidder’s
Bid Slates for various services unique circumstances that contract, the scope of work — commercial proposal will be
contracts: may justify it. Sole Source including the plans and
required by the proponents. The evaluated only if the technical
Group is also responsible for 1. Open Bidding: A notice procurement is justified, for specifications of the proposed proposal is determined to be
sourcing, prequalifying, and is posted on the Saudi example, when a contractor project — general instructions to sufficient to meet contract
placing contractors on these Aramco Bulletin Board in provides a unique propri- the bidders for preparing the requirements.
General Bid Slates for the ECN. This Information etary service, when there is bid, and any special instructions
consideration in future contract for Bidder notice provides an unusual urgency to the that the particular project may All bid openings are conducted
procurement actions. overall descriptions of the work, or when a contractor require. by the Contracting Department
work, any prequalification has mobilized and the limited and the Finance organization in
To see examples of these work scope does not justify In many cases, the bidders are strict compliance with Saudi
requirements that must be invited to visit the proposed
General Bid Slates and met, and the date of the Job mobilizing another contrac- Aramco procedures designed to
contracting opportunities with tor. contract work site to familiarize ensure confidentiality and
Explanation Meeting. Any themselves more fully with the
Saudi Aramco, please visit Saudi contractor may bid when fairness to all bidders.
Aramco’s website under work requirements. During JEM
this procurement method and job site visits, bidders are Following the bid opening, there
contracting opportunities. For a contractor’s commercial
is used. encouraged to ask questions. will be no information released
Contractors may request to be bid to be considered for any
2. Open Solicitations with contract, the contractor must be on the progress of the bid
considered for prequalification Questions that arise following
Selective Bidding: These are considered qualified to perform evaluation. This information is
and inclusion on General Bid JEM and site visits must be
also posted on the Saudi the work. We review technical strictly confidential.
Slates for specific scopes of submitted in writing to the
Aramco Bulletin Board and financial qualifications to
work by contacting the group at Contract Representative, who
available in the ECN to allow determine whether a contractor
contractor-prequal@aramco. will respond in writing and
all contractors the equal is qualified or not.
com. provide a copy of the questions
opportunity to indicate
Preliminary contractor and answers to all bidders. The
Please note that registration or interest in submitting a bid.
After a careful analysis of the capabilities are determined Contract Representative will also Our contracts
prequalification with Saudi
Aramco is not a guarantee of responses, we select those primarily from the ECN, transmit to all bidders, in writing, provide for the
future work. Furthermore, contractors considered to including contractor any modifications to the bid
contractors’ overall safety be best qualified for bidding performance reports on other package during the bidding fair and equitable
provides valuable insight into on the work and extend contracts. Additional pre- period. resolution of
their safety culture awareness them an invitation to the qualification or technical
and quality of work. Therefore, Job Explanation Meeting. proposal information unique to
Bid closing date and bid
opening
disputes that
and in line with Saudi Aramco’s This is our most common the specific procurement may be may arise
Corporate Values, contractors and preferred procurement requested from the contractor. The Instructions to Bidders
shall be requested to submit a method.
Contractors with assets above
clearly specify a bid closing date between Saudi
separate pass/fail Safety and a time. Bids must be
Prequalification to evaluate their
3. Restrictive Selective Bidding:
We review the record of con-
$10,000,000 that wish to be
deposited according to the
Aramco and
considered for contracts must
safety program and safety tractors whose performance also submit current audited
Instructions to Bidders in the contractors.
performance to be included on indicates capabilities in a Contracting Department’s
financial statements to our
General Bid Slates. particular type of work and locked bid box. The bid boxes
34 doing business with Saudi Aramco 35

Negotiation of competitive binding unless signed by both

bids Saudi Aramco and the
contractor.
Bidders should be aware that
Saudi Aramco does not Debriefing meeting
negotiate base bids that have
been solicited on a competitive An unsuccessful bidder may
basis. Exceptions to this policy request in writing to the
are very rare and, if considered, Contracting Department that a
require the approval of Saudi debriefing meeting be held to
Aramco’s corporate determine why the contractor’s
management. bid or prequalification proposal
was not successful. We
Saudi Aramco assumes that a encourage debriefing meetings The Claims and Technical Contractor assistance
bidder’s first price is its best and because they help contractors Services Unit of the Contracting
last price. Accordingly, we do improve subsequent proposals. Department is responsible for Questions regarding specific
not expect contractors to Note that proposals from the resolution of claims, which contract procurement should be
include a contingency for competitors are never disclosed must be filed according to the referred to the Contract
negotiation because, with to the contractor. Debriefing for terms of each contract. Representative in the
respect to the bidder’s basic unsuccessful prequalification Resolution occurs through Saudi Contracting Department
proposal, such negotiations will will not be held until after the Aramco’s claim process and as responsible for that
not take place. JEM. Debriefing for unsuccessful approved by the Saudi Aramco procurement. For general
contractors will not take place contract signatory. Contractors information or for submitting
Saudi Aramco may conduct until after contract award. have the right to appeal that updated contractor information,
clarification meetings with one decision through the contractors may contact the
or more bidders before If a debriefing meeting is establishment of a Saudi Aramco Contractor Relations and
awarding the contract to ensure requested, it should occur Contract Dispute Settlement Document Control Unit in the
that both parties have a clear within one month after the Board (Appeal Board). In Contracting Department,
understanding of the work and contractor was informed its bid addition, Saudi Aramco Dhahran, or the Contracting
the terms and conditions under or prequalification proposal was contracts normally contain Services Unit in Jiddah.
which it will be performed. Base unsuccessful to ensure that arbitration provisions.
bids submitted in competitive Saudi Aramco has retained all Contracting summary
circumstances are not the relevant documentation to Applicable laws and Our major contracting objectives
negotiated or changed at these make the debriefing manpower are to complete the work on
clarification meetings. meaningful. time in conformance with
Contractors are expected to
Contract award Contract performance and comply with all applicable demanding technical standards
administration Government laws and and at the least overall cost to
When the bid evaluation has regulations, and to structure Saudi Aramco. To meet that
been completed by a Saudi Day-to-day administration of their bids accordingly. We objective, we conduct our
Aramco Bid Review Team, the the contract is the responsibility strongly encourage contractors contract procurement in a fair
recommended award is of the contract’s proponent to employ Saudi nationals for the and equitable manner and
presented to Saudi Aramco organization. Contract changes performance of work in endeavor to create and maintain
management for approval. are negotiated with the alignment with Saudi national a procurement environment
contractor as needs arise and policy and our commercial attractive to qualified,
Procurement plans and award take the form of either change competitive contractors. We
recommendations for high- strategic direction.
orders or amendments to the welcome all qualified contractors
value contracts are reviewed by base contract. When the contractor finds it to compete for Saudi Aramco
Saudi Aramco corporate necessary to employ foreign contracts.
management. Claims labor, compliance with Saudi
After the contract has been Saudi Aramco contracts also Arabia Government regulations
signed on behalf of Saudi provide for the fair and and issuance of visas and Iqamas
Aramco, two original copies are equitable resolution of disputes is the responsibility of the
presented to the selected bidder that may arise between Saudi contractor. Saudi Aramco does
for signature. The contract is not Aramco and contractors. not provide assistance in this
regard.
07
36 doing business with Saudi Aramco 37

contact
information
38 doing business with Saudi Aramco 39

Contact information
country/company function area of responsibility address, phone, and fax
Saudi Arabia / Saudi Aramco Saudi Aramco One-stop shop to handle all Supplier Help Desk, Saudi Aramco Box 77-X, North Park 2, Dhahran 31311, Saudi Arabia.
Supplier Help Desk inquiries and issues from suppliers Tel: +966-13-874-2222, Email: SupplierHelpDesk@aramco.com

Saudi Arabia / Saudi Aramco Supporting Local Industrial Saudi Arabia Supplier Solutions Center, Saudi Aramco Box 77-X, North Park 2, Dhahran 31311, Saudi Arabia.
Development Fax: +966-13-874-0015 , Email: SSC@aramco.com

Saudi Arabia / Saudi Aramco Supplier performance Saudi Arabia Supplier Performance Unit, Saudi Aramco Box 77-X, North Park 2, Dhahran 31311, Saudi Arabia.
management Tel: +966-13-874-0061, Fax: +966-13-874-0015,
Email: supplier-performance@aramco.com

Saudi Arabia / Saudi Aramco Manufacturer Saudi Arabia and other Supplier Relations and Qualification Unit (SR&QU), Saudi Aramco Box 87, North Park 2,
Registration GCC countries, the Middle East, Dhahran 31311, Saudi Arabia.
Egypt, Kenya, Somalia, and Sudan Tel: +966-13-874-0321, General Line: +966-13-874-0958
Fax: +966-13-874-0015, Email: manufacturer-registration@aramco.com,
Manufacturers online registration: www.saudiaramco.com > Click on the Suppliers Tab >
Choose Material or Services Supplier > Click on Register

Saudi Arabia / Saudi Aramco Vendor Registration Saudi Arabia Supplier Relations and Qualification Unit (SR&QU), Saudi Aramco Box 87, North Park 2,
Dhahran 31311, Saudi Arabia.
Tel: +966-13-874-0799, General Line: +966-13-874-0373,
Fax: +966-13-874-0015/0335, Email: vendor-registration@aramco.com,
Vendor online registration: www.saudiaramco.com > Click on the Suppliers Tab >
Choose Material or Services Supplier > Click on Register

Saudi Arabia / Saudi Aramco Contractor Registration Saudi Arabia Contractor Relations Counter, North Park 2, Room 162, Dhahran 31311, Saudi Arabia.
Tel: +966-13-874-2287, -2457, Fax: +966-13-874-2260,
Electronic Contracting Network IK Registration: http://esr.aramco.com, OOK registration and
general inquiries: contractor-registration@aramco.com

USA/Aramco Services Company Manufacturer and The Americas Aramco Services Company, Two Allen Center, 1200 Smith Street, Houston, TX 77002
Supplier Registration (Western Hemisphere) Tel: +1-(713)-432-5555, Fax: +1 (713) 432-4716, Strategic Sourcing,
Email: StrategicProjects@aramcoservices.com
Website: www.aramcoservices.com/strategicprojects Supplier Relations Group

USA/Aramco Services Company Service Contractors North America Aramco Services Company (ASC), Tel: +1-(713)-432-4000,
Email: contractor-registration@aramcoservices.com,
Website: www.aramcoservices.com

Aramco Overseas Company B.V. Contractor Registration Europe and South Africa Aramco Overseas Company B.V. (AOC) The Hague Office, Strategic Sourcing,
Scheveningseweg 62-66, 2517 KX The Hague, The Netherlands,
Tel: +31-(0)-88-262-2000, Fax: +31-(0)-88-262-3000,
Email: aocStrategicSourcing@aramcooverseas.com
Website: http://www.aramcooverseas.com/suppliers/service-suppliers/
40 doing business with Saudi Aramco 41

Contact information
country/company function area of responsibility address, phone, and fax
The Netherlands / Aramco Manufacturer and Europe and South Africa Aramco Overseas Company B.V. (AOC), The Hague Office, Strategic Sourcing,
Overseas Company Supplier Registration Scheveningseweg 62 - 66, 2517 KX The Hague, The Netherlands,
Tel: +31 (0) 88 262-2000, Fax: +31-(0)-88-262-3000,
Email: aocStrategicSourcing@aramcooverseas.com,
Website: https://aramcooverseas.com/suppliers/material- suppliers

Japan / Aramco Asia Japan K.K. Manufacturer and Australia, New Zealand, Japan, Aramco Asia Japan K.K., 26th Floor, Marunouchi Building, 2-4-1, Marunouchi, Chiyoda-ku, Tokyo
Supplier Registration Taiwan (*), Hong Kong (*) 1006326, Japan,
Tel: +81-(0)3-6367-7801, Fax: +81-(0)3-3211-3544,
Email: AAJ-Registration@aramcoasia.com,
Website: https://japan.aramco.com/en/home.html

Aramco Asia Korea LTD Manufacturer and Republic of Korea Aramco Asia Korea Limited, 18F, Seoul Finance Center, 136, Sejong-daero, Chung-gu,
Supplier Registration Seoul, 04520, Korea
Tel: +82-(0)2-6270-5553, Fax: +82-(0)2-6270-5592
Email: AAKSupplierRegistration@aramcoasia.com, Website: http://korea.aramco.com/en/home.
html

Singapore / Aramco Asia Manufacturer and SE Asian countries Aramco Asia Singapore PTE-LTD, 6 Battery Road, #35-01/02, Singapore, 049909
Singapore PTE-LTD Supplier Registration such as Malaysia, Singapore, Tel: +65-6224-2228, Fax: +65-6225-5388
Indonesia, Thailand,
Vietnam, Cambodia, Email: AAS-Registration@aramcoasia.com
and the Philippines Website: http://singapore.aramco.com

India / Aramco Asia India Manufacturer and India Aramco Asia India Private Limited, 2A-801, 8th Floor, Two Horizon Center, DLF Phase-5, Sector 43,
Private Limited Supplier Registration Gurugram-122002, Haryana, India.
Tel: +91-(124)-647-3600, Fax: +91-(124)-647-3609
Email: aaiSupplierRelation@aramcoasia.com; aaiSourcing@aramcoasia.com,
Website: www.saudiaraco.com

China / Aramco Asia China Manufacturer and China (including Taiwan Aramco Far East (Beijing) Business Services Co., Ltd. (ABS), Shanghai Branch No. 16T60, 16F–SWFC
(Aramco Far East (Beijing) Supplier Registration and Hong Kong) 100 Century Avenue, Pudong New District, Shanghai 200120, PRC,
Business Services Tel: +86-(0)-21-3866-5700, Fax: +86-(0)-21-6877-9080,
Company LTD ABS)
Email: ABS-SH-Sourcing@aramcoasia.com, Website: http://china.aramco.com/en/home.html

(*): For Taiwan and Hong Kong, sourcing activities are conducted by the
Shanghai office but registration is done in Japan.
42 doing business with Saudi Aramco 43

Useful links Major companies Useful links Vocational, technical, and educational entities
1. Saudi Basic Industries Corporation, www.sabic.com • General Organization for Technical Education and Vocational
2. Saudi Electric Company www.se.com.sa Training www.tvtc.gov.sa
3. Saline Water Conversion Corporation www.swcc.gov.sa • Jubail Industrial College www.jic.edu.sa
4. Water Utility Company for Jubail and Yanbu’ www.marafiq.com.
• Jubail Technical Institute www.jti.edu.sa
sa
5. Saudi Arabian Oil Company (Saudi Aramco) www.saudiaramco. • Saudi Petroleum Services Polytechnic www.spsp.edu.sa
com • College of Technology-Dammam, www.ctd.edu.saf
6. Saudi Aramco and Dow Chemical Company (SADARA), www. • King Abdullah University for Science and Technology (KAUST)
sadara.com www.kaust.edu.sa
Land allocation entities • King Abdullah Petroleum Studies and Research Center (KAPSARC)
7. Royal Commission for Jubail and Yanbu’ www.rcjy.gov.sa https://www.kapsarc.org
8. Saudi Industrial Property Authority (MODON) www.modon.gov.
sa
9. Rabigh Conversion Industrial Park www.rabighCIP.com List of • AAC: Aramco Asia Company AOC: Aramco Overseas Company

abbreviations
• ASC: Aramco Services Company CR: Commercial Registration
10. Dhahran Techno-Valley, http://www.dtvc.com.sa (R&D Purposes)
• ECN: Electronic Contracting Network
Funding entities • P&SCM: Procurement and Supply Chain Management
11. Saudi Industrial Development Fund www.sidf.gov.sa organization
12. Human Resources Development Fund (HRDF) www.hrdf.org.sa • QMS: Quality Management System SAGIA: Saudi Arabia General
13. Saudi Aramco Entrepreneurship Center (Wa’ed) for SME, http:// Investment Authority
www.waed.net • GOSI: General Organization for Social Insurance
Government and semi-government entities • SASO: Saudi Arabian Standards Organization Insurance
14. Saudi Government Electronic Portal www.saudi.gov.sa • SIDF: Saudi Industrial Development Fund
15. Saudi Arabia General Investment Authority www.sagia.gov.sa • HRDF: Human Resources Development Fund
16. Council of Saudi Chambers www.saudichambers.org.sa • SME: small to medium enterprises
17. Ministry of Energy Industry and Mineral Resources www.meim.
gov.sa • iktva: In-Kingdom Total Value Add Program
18. Ministry of Finance www.mof.gov.sa • SPU: Supplier Performance Unit
19. Electricity and Cogeneration Regulatory Authority, www.ecra. • JEM: Job Explanation Meeting
gov.sa
• SR&QU: Supplier Relations and Qualification Unit
20. Department of Zakat and Income Tax www.dzit.gov.sa
• ISO: International Organization for Standardization
21. Ministry of Commerce and Investment www.mci.gov.sa
22. Ministry of Labor www.mol.gov.sa • SSC: Supplier Solution Center
23. General Organization for Social Insurance www.gosi.gov.sa • KPI: Standardization key performance indicators
24. Saudi Standards, Metrology and Quality Org www.saso.org.sa • WTO: World Trade Organization
25. Saudi Trade & Export Development Company, www.tusdeer. • LSTK: lump sum turnkey
com
26. Saudi Export Development Authority https://www.saudiexports. • MIGA: Multilateral Investment Guarantee Agency
sa • MOCI: Ministry of Commerce and Industry
27. Dammam Bonded & Re-export Zone www.reexport.com • MODON: Saudi Industrial Property Authority
28. Saudi Ports Authority www.ports.gov.sa
29. Saudi Customs www.customs.gov.sa
Procurement & Supply Chain Management
North Park 1, Saudi Aramco, Dhahran
www.saudiaramco.com
© Saudi Arabian Oil Company, 2018