Flowserve Announces Agreement with Saudi Aramco


Flowserve Corporation announced it has received final approval from Saudi Aramco on a master purchase agreement to supply pumps, valves and services for the Yanbu Export Refinery Project

Under the terms of the corporate procurement agreement (CPA) established between Flowserve and Saudi Aramco, Saudi Aramco plans to make significant future purchases of Flowserve pumps, valves and value-added services. Flowserve expects to begin booking orders under the CPA later in 2010.

Flowserve cited its Kingdom of Saudi Arabia manufacturing facility, strong aftermarket support capabilities, broad product portfolio, technology leadership, and long-standing partnership with Saudi Aramco as its key reasons for winning this agreement.

"We are pleased to expand our relationship with Saudi Aramco for the important YERP project, which will help meet expanding global energy demand by increasing refining capacity in the Middle East," said Tom Ferguson, president, Flow Solutions Group. "Flowserve has made significant investments in the Kingdom of Saudi Arabia, including service, repair and manufacturing facilities to support the oil and gas industry, and to help ensure premium service can be provided in-country."

Under construction on the west coast of Saudi Arabia, YERP will be a 400,000 barrel-per-day, full-conversion refinery being built in Yanbu Industrial City, Saudi Arabia. The refinery is designed to process Arabian heavy crude and will produce high-quality, ultra-low sulfur refined products, including gasoline and diesel fuel. The new refinery is expected to be operational in 2014.

"This agreement reinforces Flowserve s ongoing commitment to delivering valve products and services in Saudi Arabia through our local facilities," said Tom Pajonas, president, Flow Control Division. "This overall Flowserve strategy is supported by the fact that the project will require a majority of the Flowserve control valves to be produced at our new Dammam valve and actuator facility, which we plan to open in the third quarter of 2010. When completed, the facility will be one of several sites Flowserve has in the region."

In addition, Flowserve and its partners operate Quick Response Centers (QRCs) in the Kingdom of Saudi Arabia, which provide service and repair. These operations help support the Saudi Aramco supply chain with access to Flowserve technology and innovative solutions.

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