Saudi Aramco signs long-term supply agreement with Siemens Energy

Aramco, the oil-exporting giant from Saudi Arabia, signed a long-term service agreement with Siemens Energy to secure equipment for its oil fields.

The German partner will supply turbines and generators for oil fields, although the value of the 15-year contract was not disclosed, Bloomberg said on Tuesday. Over the years, Saudis have mandated localisation requirements for all international partners in its energy sector.

Last year, Siemens Energy was spun off from the Siemens Group, now is focused on supplying a range of turbines and generators for four major oil fields. The German company is ready to expand its localisation efforts through using high-tech industry and training of a skilled local workforce.

Earlier this year, the kingdom said it will stop giving contracts to any company that has its regional headquarters outside the country from 2024 in an effort to incentivise localisation of business and derive more value from their foreign partners.