SIEMENS inks agreements with Saudi Aramco during “IKTVA” Forum

Siemens has shown its commitment and dedication to continuously drive their agenda of local value add during Saudi Aramco’s IKTVA Forum on December 14th. During the Forum, Saudi Aramco and Siemens have inked several agreements to collaborate in the fields of Renewable Energy, Research and Development, as well as Digitalization in the Oil & Gas industry.

Digitalization is disruptive and it forces all industries to constantly evaluate their business models and work practices to remain competitive. Whether in plant operations, building management, energy, mobility or healthcare, Siemens is closing the gap that previously separated hardware from software. Cloud technologies and data analytics are extremely valuable in this process. Siemens’ scalable open cloud platform, known as MindSphere, therefore equips industries with strong capabilities to master the digital transformation through data analytics, integration, advanced software applications and services. In addition, MindSphere is flexible since it integrates the existing applications of assets to drive their performance and ensure maximum uptime.

Amin Nasser, President and CEO of Saudi Aramco, said “Saudi Aramco’s agreements with Siemens resonates with the overall goals of the IKTVA program where partners collaborate closely to drive additional domestic value creation, support the Kingdom’s economic transformation and enable the future prosperity of the Kingdom. The participation of partners like Siemens in IKTVA is crucial to enabling a sustainable and competitive world-class Saudi energy sector.”

The “In Kingdom Total Value Add” (IKTVA) program, which marked its first anniversary at the IKTVA Forum this month, is instrumental in leveraging opportunities to drive additional domestic value creation and support a rapidly changing Saudi economy.

Joe Kaeser, President and CEO of Siemens AG, who attended the IKVTA Forum for the second time and witnessed the agreement signing ceremony, said “While factors such as economics, technology and organizational capability continue to drive competition, the localization of value chains in Saudi Arabia is a compelling driver for the Kingdom’s Vision 2030. Our strategy resonates with this approach because we believe that business must add lasting value to communities. Localization is therefore critical for further advancing the Kingdom of Saudi Arabia.”

Siemens investments in the expansion of its local footprint expansion across the value chain translates into creating quality jobs for Saudi nationals, enhancing innovation, economic diversification and increased global competitiveness for the Kingdom.

Just recently, Siemens has built Saudi Arabia’s first “Made in KSA” gas turbine at the Siemens Dammam Energy Hub, the first gas turbine plant of its kind in Saudi Arabia and the largest in the Middle East. The turbine was built by young Saudi gas turbine experts who were trained locally and abroad, and in partnership with the Saudi Petroleum Services Polytechnic (SPSP). The plant is completing the production of six turbines for Saudi Aramco’s Integrated Gasification Combined Cycle (IGCC) power plant in Jazan.

The IKTVA program highlights job creation as an important aspect of driving local value creation. In November, Siemens signed a Memorandum of Understanding (MoU) with Colleges of Excellence (CoE) to jointly develop a vocational education and training concept modelled around the German dual education system. CoE and Siemens will implement a pilot project and develop a concept for a phased Kingdom-wide rollout. The joint initiative will focus on the skills requirements to develop more technicians and business administration graduates.

Furthermore, Siemens signed an MoU with the MiSK Foundation, an independent non-profit organization that aims to advance youth development in technology, business and arts. The MoU outlines the joint intention to expose a greater number of Saudi youth to advanced technologies, to expand the Kingdom’s tech community, and to develop the next generation of business leaders and experts in digital technology.

As a partner to the MiSK Foundation, Siemens participated in the MiSK Hackathon in November. This was a first of its kind event that happened simultaneously in Riyadh and London over a period of 48 hours. The event was streamed online and brought together the most inventive young minds in Saudi Arabia and the UK to change the world by solving world health issues through technology and innovation. Around 400 young inventors and entrepreneurs competed in mixed teams, with Siemens’ technical experts providing mentorship and guidance.

Arja Talakar, CEO of Siemens Saudi Arabia, added: “Our partnerships with stakeholders in Saudi Arabia are fully in line with the Saudi Vision 2030 and with the IKTVA objectives. Our joint activities tremendously contribute to the objectives of high-tech development in the Kingdom, create new and highly qualified jobs for Saudi citizens, diversify local industries, drive energy efficiency and advance the environmental aspects in the Kingdom.”