Oil giant Saudi Aramco has signed two deals in recent months, one with ITT Corporation for the supply of pumps and pump-related products and the other with Hitachi Ltd for the delivery of compressors.

The deal signed by Saudi Aramco with ITT Corporation requires the latter to supply Goulds pumps and pump-related products and services to Aramco’s oil, gas and petrochemical projects in Saudi Arabia and internationally.

Under a seven-year strategic agreement, ITT and its partner Aswad Group will provide a range of products from Goulds pumps to BIW well-head connectors, ProSmart predictive condition monitoring systems and PumpSmart advanced pump controls and services through ITT Saudi Co Ltd, ITT’s local manufacturing and service operation located in Dammam Second Industrial City.

ITT Saudi Arabia will provide professional expertise to support start up and commissioning of all types of pumping systems. It will also provide expert aftermarket services to support Saudi Aramco’s operations through ITT PRO Services and plant performance services programmes, which are designed to help customers lower total cost of ownership, minimise downtime and increase equipment reliability, said a statement.

Strategic initiatives

The agreement also covers several strategic initiatives, including a programme whereby ITT will support Saudisation efforts to enhance local industrial manufacturing capability, develop local supply chains and improve overall plant performance for Saudi customers.

'This agreement and our partnership with Saudi Aramco is a significant milestone in our oil and gas sector growth plans,' said Robert Pagano Jr, president of ITT’s Industrial Process business. 'The oil and gas industry is now the largest segment of our Industrial Process business, and we are proud to bring our highly customised solutions and applied engineering expertise to customers in this growing global market.'

ITT Saudi has a world-class manufacturing and Pro Service centre in Dammam. The facility is equipped with the latest technology, including a fully automated test stand for horizontal and vertical pumps widely used in the oil and gas industry.

The agreement was signed by Munir Rafie, Saudi Aramco’s vice president for materials supply, and Pagano.

Hitachi deal

Under the Hitachi agreement to supply compressors, Hitachi Plant Technologies Ltd will suggest compressor technology to Aramco at the planning stage of the project and the Japanese company’s engineering unit will also be granted access to information necessary for maintenance, the Nikkei business daily said.

Saudi Aramco has similar deals with three European and US compressor manufacturers, including General Electric Co and Siemens AG, the Nikkei reported.

Hitachi, which is the first Japanese concern to enter such a deal, will now be able to compete at par with its European and US rivals, it said.

Saudi Aramco’s oil and natural gas plants use around 10 compressors, with a single order expected to bring in 10-20 billion yen ($125-$249 million) in sales for Hitachi, the business daily reported.

Japan’s largest industrial electronics company hopes its cooperation in compressors may subsequently result into orders for other plant equipment, such as turbines and motors, the Nikkei said.

Hitachi will establish a maintenance base in Saudi Arabia this fiscal year as it sees demand growing and aims to double its compressor operations from current levels to 60 billion yen in fiscal 2015, including plant servicing and parts replacement, the newspaper reported.

The company has an extensive product line-up to satisfy various needs, ranging from the large centrifugal compressors for process use that form the heart of petrochemical plants, chemical plants and natural gas plants to general-purpose compressors.