“In addition, a sub-procurement agreement grants Saudi Aramco improved access to Siemens Oil and Gas Division’s rotating equipment and services,” Anwar Aleitani, vice president of Siemens Saudi Arabia’s Oil and Gas Division, said on Thursday.
“This corporate procurement agreement with Saudi Aramco demonstrates our ongoing commitment to the Kingdom and to the development of local technology and infrastructure,” said Aleitani.
The accord will ensure Saudi Aramco a better access to Siemens global services and manufacturing network, he added.
Saudi Aramco manages the largest proven reserves of conventional crude oil, 260.1 billion barrels, and the fourth-largest gas reserves in the world, 275.2 trillion cubic feet.
Saudi Aramco’s Vice President of Materials Supply Munir Rafie said: “We are delighted to conclude this wide ranging agreement with Siemens, which has made a very important contribution in supporting the efficient production of oil and gas in the Kingdom, with a good record of investing in the local economy.”
The agreement will enable Saudi Aramco to take advantage of the rotating equipment portfolio of the Siemens, he added.
Spelling out the salient features of the agreement, Rafie said the CPA will cover low-emissions gas turbines with a capacity of up to 50 megawatts (MW) for a wide range of applications, high-efficiency steam turbines with ratings up to 200 MW, and compressors and blowers initially for a period of seven years. He said that shop, field services and spare parts are also included in the CPA.
On the technical strength of Siemens and its presence in Saudi Arabia, Aleitani said that Siemens has been present in Saudi Arabia for over 75 years.
He said Siemens Saudi Arabia owes much of what has been achieved in this time to its partner and sponsor, EA Juffali & Brothers — one of Saudi Arabia’s largest and most respected diversified business groups. He said that Siemens Energy Sector is the world’s leading supplier of a complete spectrum of products, services and solutions for the generation, transmission and distribution of power and for the extraction, conversion and transport of oil and gas.
In fiscal year 2009 alone, the Siemens’ energy generated revenues of approximately 25.8 billion euros and received new orders totaling 30 billion euros. It posted a profit of 3.3 billion euros.
The Siemens Energy Sector, which has a workforce of more than 85,100 people globally, has over 1,800 workers on its payroll. Siemens activities in Saudi Arabia date back the early 1930s when the country imported its first power plant equipment. One third of the power used in the Kingdom is generated and distributed by Siemens.
The company, on the other hand, also committed to support the careers of young Saudis through targeted professional recruitment and training programs.
Saudi Aramco, on the other hand, is a fully-integrated, global petroleum enterprise and a world leader in exploration and producing, refining, distribution, shipping and marketing.
In addition to its headquarters in Dhahran, Saudi Aramco has joint ventures and offices in China, Japan, India, the Netherlands, the Republic of Korea, Singapore, the UAE, the UK and the US.