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Shell selects Siemens as its single main power distribution contractor
Shell has signed a five-year global framework agreement with Siemens AG for the provision of
integrated power distribution systems used in Shell’s projects all over the world. Based on
this agreement Siemens Energy will provide Shell with power distribution technology used in
Shell’s refinery, gas and chemical as well as exploration projects as the sole main power
distribution contractor. Shell’s annual capital expenditure for power distribution ranges
between USD300 million and USD400 million.
“We’re proud that Shell has opted for our first-class, field-proven technology. As the
projects in the oil and gas industry are challenging and expensive, reliability and
efficiency are the key factors for success,” said Ralf Christian, CEO of the Power
Distribution Division of Siemens Energy. This division within Siemens Energy posted revenue
totaling EUR3.3 billion in 2009.
“The global framework agreement is a long-term, collaborative, performance-based relationship
that will facilitate the delivery of considerable value to both parties. The Enterprise
Categories & Suppliers organization is currently emulating this approach in many other global
categories as part of Shell’s new contracting and procurement strategy,” said Ronaldo
Marques, Group Manager for Shell’s Enterprise Category for Equipment. “As the main power
distribution contractor, we will to the full extent possible be able to use our broad-based
competence to design and implement turnkey energy distribution systems for Shell,” said Dr.
Wolfgang Heuring, CEO of Siemens’ Medium Voltage Business Unit.
The global framework agreement covers gas-insulated high-voltage switchgear and gas- or
air-insulated medium-voltage switchgear. Oil-filled and dry transformers are also included as
well as control systems for energy management and services such as project management,
engineering and site supervision. Joint ventures in which Shell has a majority stake are also
included in the agreement. Siemens will deliver the ordered solutions complying with all
required standards such as IEC or ANSI/NEMA from its global manufacturing network.
“This global framework agreement marks a completely new approach within Shell for the
provision of our main power distribution scope, and I strongly support and advocate the
agreement,” said Wim de Wilt, Shell’s Global Discipline Head for
Electrical.
For more information about Siemens Energy Sector go to
www.siemens.com/energy
Posted June 15, 2010
The 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 2009 (ended September 30), the
Energy Sector had revenues of approximately EUR25.8 billion and received new orders totaling
approximately EUR30 billion and posted a profit of EUR3.3 billion. On September 30, 2009, the
Energy Sector had a work force of more than 85,100. Further information is available at:
www.siemens.com/energy.
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