Novated Procurement: Saudi Aramco Experience
Keywords:Novation, Procurement, Project, Process, Management, Strategy, Risk
Saudi Arabian Oil Company (Saudi Aramco), the world’s leading energy company, offers new thinking, new approaches, and new solutions for the future of energy. This short article provides insights into the novated procurement process and the experience of Saudi Aramco in using novated purchase orders to procure long lead materials and critical equipment for its mega projects. This paper also sheds some light on the Saudi Aramco’s Capital Management System (CMS), the concept of novated procurement along with the main activities involved in the novated procurement, and concludes with key considerations, and risk mitigation.
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Saudi Aramco Engineering Procedure [SAEP-17]. (2021). Project Stage and Gate Governance. Retrieved September 5, 2021, from https://standards.aramco.com.sa.
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