RIYADH: Saudi energy giant Aramco has entered into a collaboration with Vietnam Oil and Gas Group, also known as Petrovietnam, to jointly work on storage, supply, and trading activities within their respective energy and petrochemical sectors.
This agreement was formalized during Vietnamese Prime Minister Pham Minh Chinh's official visit to Saudi Arabia and was signed at the eighth Future Investment Initiative in Riyadh. The Collaboration Framework Agreement seeks to identify initiatives that can optimize operations and create value, according to a press release.
Mohammed Al-Qahtani, Aramco's downstream president, expressed enthusiasm, stating: "We anticipate exploring numerous opportunities with Petrovietnam that align with Aramco's global downstream objectives."
Le Ngoc Son, CEO of Petrovietnam, underscored the strategic significance of the agreement, describing it as "a testament to the robust collaborative relationship between Petrovietnam and Aramco."
In a separate development, Aramco has also formed a partnership with Taulia, a fintech company owned by SAP, which specializes in working capital management solutions.
Backed by the Saudi Industrial Development Fund, this partnership aims to establish one of the world's largest supply chain financing programs, designed to improve liquidity for Aramco's suppliers.
This initiative intends to offer a cost-effective financing option, enhance cash flow forecasting, and bolster Aramco's supply chain resilience.
Ziad Al-Murshed, Aramco's chief financial officer and executive vice president of finance, emphasized the strategic importance of the new fintech solution, noting: "At Aramco, we understand the vital role our suppliers play in ensuring our business continuity."
He further added that the platform will provide suppliers with "a distinctive and competitive financing opportunity" and enable banks to participate as finance providers, "increasing the solution's scope and effectiveness."
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