Siemens and Saudi Aramco sign strategic procurement agreement
Erlangen, Germany, 2011-Feb-09
Siemens and Saudi Aramco, one of the world's largest oil companies headquartered in Dhahran, Saudi Arabia, have signed a corporate procurement agreement (CPA). This corporate-level agreement will strengthen the cooperation between the two companies. In addition, a sub-procurement agreement grants Saudi Aramco improved access to Siemens Oil and Gas Division's rotating equipment and services. This will lead to more cost efficiency for both companies due to reduced project times.
"We have worked closely with Saudi Aramco to better understand its needs and requirements," said Tom Blades, CEO of the Siemens Oil and Gas Division. "This corporate procurement agreement with Saudi Aramco demonstrates our commitment to the kingdom of Saudi Arabia. At the same time Saudi Aramco will have even better access to SiemensÂ´ global service and manufacturing network."
Munir Rafie, Saudi Aramco Vice President of Materials Supply, said: "We are delighted to conclude this wide ranging agreement with Siemens. Over many years, Siemens 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 Siemens Oil and Gas Division. Initially for a period for seven years, 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. Shop and field services and spare parts are also included in the CPA.
Siemens has been present in Saudi Arabia for almost 75 years. Since 1976, Siemens has been a joint venture partner of E.A. Juffali & Bros. Today, Siemens has over 1,800 employees in Saudi Arabia.