Aramco Europe hosts major supply summit in Milan

About 300 delegates attended the Pan European Supplier Summit at the Palazzo Parigi in Milan from Oct. 18-19 to hear from the company’s top procurement leadership.

Aramco Senior Vice President Procurement & Supply Chain Management Mohammad Al-Shammary told the gathering: “For suppliers who share our sense of responsibility and ambition, there are significant opportunities as we look ahead. 

“We want to identify new potential partners for long-term agreements, addressing the need for critical commodities – as well as growing needs in areas like renewables, hydrogen production, mobility infrastructure, energy storage and digital transformation.”

He was joined by Yahya Abu Shal, Aramco’s Senior Vice President of Upstream and Downstream Project Management.

He said: “As Aramco continues to grow . . .  we will need to tap into the expertise of companies like yours to help us achieve our goals to provide a reliable and affordable supply of energy around the globe.”

Delegates were also given the opportunity to learn more about the broader investment landscape in the Kingdom from representatives of the Ministry of Investment and the Saudi Industrial Development Fund.

The Aramco Europe story began in Rome in 1948, and 75 years on, Italy remains a key logistical hub for the company, which was reflected in the large Italian presence at the event.

The main purpose of the summit was to connect Aramco’s senior procurement experts with the company’s European supply chain and to encourage networking, engagement and collaborative problem solving through different workshops and panels.

More than 400 one-on-one meetings were held during the event as delegates met with the Aramco Europe team who briefed them on key developments across the company’s operational ecosystem.

Aramco Europe Vice President Procurement and Supply Chain Management Khalid Alassaf, said: “I was delighted to meet so many of our valued suppliers in person in Milan and am confident that with their continued drive and commitment, we will continue to deliver on our commitments to customers worldwide.”

The importance of localization within Aramco’s supply chain was a major theme of the event while attendees also received updates on the significance of ESG and related legislation. 

The suppliers met at a time of unprecedented activity across Aramco’s global supply chain which is supporting the largest capital investment program in the history of the company.

As Aramco increases oil and gas production capacity and expands into new downstream markets, the company requires a robust, resilient and reliable supply chain.

Delegates heard how suppliers will play a vital role in helping to advance the materials transition with a focus on the use of more sustainable materials and an emphasis on circular carbon economy initiatives.

They were also briefed on the opportunities arising from the rapid expansion of the Kingdom’s economy, already the fastest growing within the Group of 20 (G20).

The In-Kingdom Total Value Add program known as “iktva,” was launched back in 2015, to further strengthen the company’s supply chain and help to establish a locally competitive industrial base. The iktva program has been hugely successful in those goals, which is why Aramco continues to channel more of its local spend to companies that support the program.