Aramco Strengthens Procurement Amid US Tech Collaborations

Saudi Aramco, one of the world’s largest companies by revenue, has formalised 34 new partnerships with major US firms through a series of Memoranda of Understanding (MoUs) and agreements. 

The deals, estimated at a combined value of around $90bn, reinforce Aramco’s strategy to modernise procurement, drive digital transformation and foster industrial development through collaboration.

Aligning procurement with growth and innovation

Aramco’s agreements cover a wide range of sectors including AI, liquefied natural gas (LNG), sustainable manufacturing and procurement of materials. 

The company says the deals are intended to deepen existing US-Saudi relationships while enhancing shareholder value and supporting development across the energy sector.

Aramco outlines the significance of its US ties in procurement and technology by explaining that the new agreements “aim to build on the longstanding relationship between Aramco and US companies, enhance shareholder value and foster further collaboration and innovation in the energy sector and beyond”.

Amin H. Nasser, President and CEO of Aramco, highlights the historical roots of these relationships: “These announcements show the breadth and depth of Aramco’s long history of partnerships with US companies since the first discovery of oil in the Kingdom more than 90 years ago.”

He continues: “Our US-related activities have evolved over the decades and now include multi-disciplinary R&D, the Motiva refinery in Port Arthur, start-up investments, potential collaborations in LNG and ongoing procurement.

“As Aramco pursues an ambitious value-driven growth strategy, we believe that aligning with world-class partners supports further development of our operations, strategic diversification of our portfolio, industrial innovation and ongoing capability development within the Kingdom.”

US tech firms at the centre of procurement transformation

Among the 34 MoUs signed through Aramco Group Companies, several involve major names in US technology. These include:

• Downstream procurement and licensing: Aramco and Honeywell UOP, a division focused on refining and petrochemical technologies, have entered into a technology licensing MoU aimed at an aromatics project. This type of agreement reflects the evolving role of procurement not only as a sourcing activity but also as a strategic driver of downstream innovation.
  
  
• Digital transformation and cloud services: A strategic framework agreement between Aramco and Amazon Web Services (AWS) looks at advancing digital transformation and lower-carbon initiatives. While the agreement is non-binding, it supports Aramco’s push to digitise processes, including procurement systems and supply chain management.
  
  
• AI infrastructure and industrial applications: Aramco’s MoU with Nvidia addresses industrial AI computing, creation of AI Hubs and development platforms, and the establishment of an Engineering and Robotics Centre of Excellence. The deal also involves upskilling programmes and partnerships with Nvidia’s startup network—potentially influencing how procurement decisions are informed by AI and robotics.
  
  
• 5G connectivity and smart devices: Another MoU, this time with Qualcomm, will see Aramco Digital explore collaboration on digital transformation use cases. These will use Aramco Digital’s 450MHz 5G industrial network to link smart devices with AI capabilities. Such infrastructure could directly impact procurement through smart monitoring of assets and inventory via sensors, drones and IoT devices.
  

The company has also signed deals with SLB (formerly Schlumberger), Baker Hughes, Nabors, Emerson, Honeywell, GE Vernova and KBR.

These partnerships reflect Aramco’s continued reliance on US suppliers for critical technology, services and procurement-related innovations.

Building long-term tech capacity

These MoUs are not Aramco’s first foray into US tech collaboration. The company has a longstanding history of working with US firms across cloud computing, financial services and digital infrastructure. 

Such partnerships support not only Aramco’s internal operations but also broader national strategies aligned with Saudi Arabia’s digital transformation ambitions.

Chief Technology Officer Ahmad Al-Khowaiter has previously underlined the importance of AI and its link to procurement and industrial capability. 

Speaking at the Global AI Summit 2024, he said: “I am confident that Aramco's investment in AI technologies will completely transform the way we operate.

“Through the partnerships we build, the problems we solve together and the power we supply, Aramco can help the Kingdom of Saudi Arabia become not only an energy leader, but an AI leader too.”

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