Novated Procurement: Saudi Aramco Experience
Keywords:
Novation, Procurement, Project, Process, Management, Strategy, RiskAbstract
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.
References
Hammad, M. A. (2006). Schedule improvement through innovative procurement strategies. Paper presented at PMI® Global Congress 2006 - Latin America, Santiago, Chile. Newtown Square, PA: Project Management Institute.
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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