Saudi Aramco GI 20.161

This document, Saudi Aramco General Instruction Manual GI 20.161, establishes comprehensive guidelines and procedures for the financial analysis and approval of rentals, leases, and charters of equipment and facilities. It details the criteria for determining whether an arrangement constitutes a capital lease versus an operating lease, including specific thresholds for non-cancellable terms and present values.

The manual outlines the essential components of financial analysis, such as discounted cash flow evaluations and the calculation of a Lease/Rental Cost Index (LCI), to ensure economically sound acquisition decisions. It also specifies negotiating factors, responsibilities of various departments, and the approval authorities required for these types of agreements.

This guidance is crucial for optimizing asset acquisition strategies and managing financial commitments within Saudi Aramco. Understanding these procedures helps in making informed decisions between leasing, renting, or purchasing assets, ultimately impacting the company's capital expenditure and operational efficiency.

Ideal for finance managers, procurement specialists, contract administrators, and cost controllers working in the oil and gas industry or similar large-scale organizations.