Aramco Leads New Industrial Revolution in Saudi Arabia

Saudi Aramco officials and experts confirmed the oil company will lead a new industrial revolution in the Kingdom. (SPA)
Saudi Aramco officials and experts confirmed the oil company will lead a new industrial revolution in the Kingdom. (SPA)
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Aramco Leads New Industrial Revolution in Saudi Arabia

Saudi Aramco officials and experts confirmed the oil company will lead a new industrial revolution in the Kingdom. (SPA)
Saudi Aramco officials and experts confirmed the oil company will lead a new industrial revolution in the Kingdom. (SPA)

Saudi Aramco officials and experts confirmed that Saudi Arabia boasts huge technical investment opportunities that will create a new industrial revolution that will see the introduction of 11,000 robots that will carry out highly sensitive industrial and technical tasks.

They added that the market for industrial technology and applications will be worth billions of dollars in 2025.

Aramco made the announcement during a meeting at the Eastern Province Chamber of Commerce symposium on the "4th Industrial Revolution and IKTVA support".

Aramco's technical experts said there are several opportunities in this sector given the low number of workers in this field. They explained that Saudi Arabia is seeking to normalize cloud services, a mission that requires several technicians, which will open up real opportunities for Saudis.

The new industrial revolution in the field of technology will lead to the introduction of 11,000 robots in Saudi society. They will be tasked with carrying out highly sensitive industrial and technical tasks, stressed Aramco control and operations department member Mohammed Abu Sharifa.

In addition, he said that the market for mobile solutions and advanced analytics will reach $1.5 billion by 2025. He also highlighted real opportunities in 3D printing, high-performance computing, and the number of robots and drones that will take on important services in industry, transportation and exploration.

Saudi Aramco's manager for industrial development and strategic supply, Abdullah al-Thaali, explained at the conference that Saudi Aramco's localization initiative, IKTVA, has acted as an incubator for localization investments, especially for small and medium enterprises.

He said that since its launch, IKTVA has achieved an average of 45 percent localization success rate.

Saudi Aramco reviewed the digital platform, SABB Arabia, for the registration of domestic and foreign companies, which is expanding its services to a number of major Saudi companies, such as SABIC, Marafiq, Sadara, and Satorp and al-Bahri.

Aramco officials said the platform will be expanded over the coming stages to include government institutions and, later, the Arabian Gulf region, in a move aimed at embracing new technologies and creating a unified platform for business development and sustainability.

The platform allows industrial companies or construction companies to offer their potential to enter the supply chain of various projects, with IKTVA alone providing investment opportunities estimated at $1.5 billion.

Ahmed al-Falih, of Aramco's Adaptation Program said that IKTVA, raised the level of the local product to about 45 percent in 2017.

He pointed out that IKTVA increased local purchase to 50 percent in 2017, the highest rate achieved in the history of Saudi Aramco. He added that the program has become a major requirement for business with Saudi Aramco and the company is keen to encourage its suppliers to invest in its future investment plans, which amount to about SR140 billion annually.

Meanwhile, IT and digital transformation officials at Aramco discussed investment opportunities in the local market, stressing that the Middle East's e-security market would grow to reach $55 billion by 2022.

In-Kingdom Total Value Add (IKTVA) is one of the leading models in Vision 2030. It aims to achieve 70 percent of local content in industry and services in the energy sector by 2021. The program reinforces Aramco's quest to develop an accessible global supply and supply system with a high degree of reliability and an advanced level of innovation to achieve its strategic goal of becoming the world's leading and integrated energy and chemical company.



Oil Slumps More than 4% after Iran Downplays Israeli Strikes

Oil pump jacks work at sunset near Midland, Texas, US, August 21, 2019. REUTERS/Jessica Lutz/File Photo
Oil pump jacks work at sunset near Midland, Texas, US, August 21, 2019. REUTERS/Jessica Lutz/File Photo
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Oil Slumps More than 4% after Iran Downplays Israeli Strikes

Oil pump jacks work at sunset near Midland, Texas, US, August 21, 2019. REUTERS/Jessica Lutz/File Photo
Oil pump jacks work at sunset near Midland, Texas, US, August 21, 2019. REUTERS/Jessica Lutz/File Photo

Oil prices tumbled more than $3 a barrel on Monday after Israel's retaliatory strike on Iran over the weekend bypassed Tehran's oil and nuclear facilities and did not disrupt energy supplies, easing geopolitical tensions in the Middle East.
Both Brent and US West Texas Intermediate crude futures hit their lowest levels since Oct. 1 at the open. By 0750 GMT, Brent was at $72.92 a barrel, down $3.13, or 4.1%, while WTI slipped $3.15, or 4.4%, to $68.63 a barrel, Reuters said.
The benchmarks gained 4% last week in volatile trade as markets priced in uncertainty around the extent of Israel's response to the Iranian missile attack on Oct. 1 and the US election next month.
Scores of Israeli jets completed three waves of strikes before dawn on Saturday against missile factories and other sites near Tehran and in western Iran, in the latest exchange in the escalating conflict between the Middle Eastern rivals.
The geopolitical risk premium that had built in oil prices in anticipation of Israel's retaliatory attack came off, analysts said.
"The more limited nature of the strikes, including avoiding oil infrastructure, have raised hopes for a de-escalatory pathway, which has seen the risk premium come off a few dollars a barrel," Saul Kavonic, a Sydney-based energy analyst at MST Marquee, said.
"The market will be watching closely for confirmation Iran won't counter attack in the coming weeks, which could see the risk premium rise again."
Commonwealth Bank of Australia analyst Vivek Dhar expects market attention to turn to ceasefire talks between Israel and Iran-backed militant group Hamas that resumed over the weekend.
"Despite Israel’s choice of a low aggression response to Iran, we have doubts that Israel and Iran’s proxies (i.e. Hamas and Hezbollah) are on track for an enduring ceasefire," he said in a note.
Citi lowered its Brent price target in the next three months to $70 a barrel from $74, factoring in a lower risk premium in the near term, its analysts led by Max Layton said in a note.
Analyst Tim Evans at US-based Evans Energy said in a note: "We think this leaves the market at least somewhat undervalued, with some risk OPEC+ producers may push back the planned increase in output targets beyond December."
In October, the Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC+, kept their oil output policy unchanged including a plan to start raising output from December. The group will meet on Dec. 1 ahead of a full meeting of OPEC+.