Critically, Schedule G often excludes political risk such as expropriation or changes in Saudi law as events of default. Instead, Aramco relies on its explicit commitment to operate as a commercial entity. For example, in its 2019 debut international bond (which was massively oversubscribed), the schedule clarified that dividends to the government are not restricted, but that failure to pay interest would be a default regardless of state instructions. This reassures investors that the company prioritizes bondholder claims over shareholder payouts.
IKTVA compliance is achieved by maximizing spend in five key areas, which are directly influenced by procurement decisions driven by Schedule G:
Certification for operating specialized machinery or handling dangerous materials. 5. Environmental Protection
Many vendors confuse Schedule G with Aramco’s (which covers bribery, antitrust, and human rights). The key difference:
The contract divides project assets into two distinct buckets: saudi aramco schedule g
Historically, this schedule represented a critical category of industrial materials. Understanding what it implies—regarding quality, inspection, and logistics—is essential for maintaining compliance and avoiding costly delays in the Kingdom’s energy sector.
Finding "Aramco-approved" inspectors in a competitive market can be difficult and expensive.
Contractors are required to prioritize Saudi manufacturers for material procurement. For items exceeding , contractors must typically obtain quotes from at least three Saudi manufacturers Preference for Saudi Vendors and Carriers:
Contractors must provide regular, detailed reconciliation reports to Saudi Aramco. These reports include quantities received, installed, stored, and any damaged or unusable items. Critically, Schedule G often excludes political risk such
| Violation | Immediate Penalty | Long-term Consequence | | :--- | :--- | :--- | | Using an unapproved subcontractor | Withholding of 20% of invoice value | Suspension of bidding rights for 6-12 months | | Failure to flow down HSE requirements | Daily fine of SAR 10,000 ($2,666) per violation | Mandatory safety recertification at contractor’s cost | | Off-payroll working (disguised employees) | Deemed employment order + back payment of GOSI | Referral to Public Prosecution for fraud | | Subcontracting more than approved % | Immediate termination for cause | Name published in Aramco’s "Disqualified Contractors" list (shared with PIF and NEOM) |
For large equipment and machinery, the Contractor is often required to provide a . This is a technical and catalog data package for equipment and spare parts required by Saudi Aramco for cataloging purposes. The SPDP, mandated via Schedule G, is a critical deliverable that enables Aramco's long-term maintenance and operational support. Suppliers are expected to include in the SPDP details of similar equipment previously supplied to Saudi Aramco to help accelerate the cataloging process.
Aramco regularly buys long-lead, high-value components directly—such as specialized line pipes, heavy valves, or control systems—to prevent project delays. Schedule G defines these items in an explicit document known as .
For contractors and suppliers engaging with Saudi Aramco, navigating the contractual landscape is vital for project success. Among the various annexes and schedules that form a Saudi Aramco contract, is a critical document governing the management, procurement, and utilization of materials, tools, and equipment. Logistics and Inspection Transportation:
Saudi Aramco Schedule G is significant for several reasons:
What you are responsible for procuring, transporting, and maintaining.
Local vendors and Saudi-owned transportation carriers must be used whenever practicable. 3. Logistics and Inspection Transportation: