Riyadh – Mubasher: Saudi Arabian Oil Company (Aramco) inked deals with Vietnam Oil and Gas Group Petrovietnam as well as Taulia, a leading fintech provider of working capital management solutions.
Aramco and Petrovietnam joined forces to explore opportunities for cooperation in the storage, supply, and trading of energy as well as petrochemical products, according to a press release.
The collaboration framework agreement aims to improve operations and unlock additional value.
Mohammed Al Qahtani, Aramco Downstream President, said: “This agreement lays the foundation for potential collaboration across the hydrocarbon value chain.”
“We look forward to exploring multiple opportunities with Petrovietnam that complement Aramco’s global downstream ambitions, contribute to Petrovietnam’s own strategy, and reinforce Asia’s importance in global energy and petrochemicals markets,” Al Qahtani mentioned.
Supply Chain Deal with Taulia
Aramco and Taulia, backed by the Saudi Industrial Development Fund (SIDF), sealed agreements to establish a supply chain financing solution.
Meanwhile, the two entities will create one of the world’s largest supply chain financing programmes to secure an alternative and affordable source of financing for Aramco’s suppliers.
The financing solution aims to unlock billions of Saudi Riyals in liquidity, enabling suppliers to enhance working capital and reinforce business relationships.
Ziad Al Murshed, Aramco CFO and Executive Vice President of Finance, said: “Together with our partners, we are introducing this FinTech solution for our suppliers, offering them access to a unique and competitive financing opportunity.”
“This platform also provides an investment opportunity for banks to participate as finance providers, enhancing the solution’s scale and viability,” Al Murshed elaborated.
Cedric Bru, CEO of Taulia, said: “The deal establishes one of the world’s largest supply chain financing programmes, and will provide an opportunity to access early payments for thousands of companies.”
“Our goal is to ensure that cash flows fast and easily towards suppliers. When done at scale, it creates opportunities for growth and investment for these businesses,” Bru added.
It is worth highlighting that the announced agreements were secured on the slides of the FII 8th Edition, which is being held in Riyadh on October 29-31.
Earlier this month, Aramco and ADES Holding inked a SAR 946 million contract for onshore drilling services.
In September, the Saudi oil giant penned agreements with key Chinese partners to support its ongoing boosts downstream strategy.
