Emerson, Shell sign multi-year deal for technologies and services

ControlGlobal.com
02/05/2010

AUSTIN, Texas -- Emerson Process Management announced today it has entered into a five-year global framework agreement (GFA) with Shell to serve as a main automation contractor (MAC) on future capital projects globally.

Under the agreement, Emerson will provide project and support services for main automation systems, including distributed control systems (DCS) and safety instrumented systems. The contract also provides for ongoing maintenance of existing systems, plus the supply of new systems for brownfield and greenfield facilities.

While Shell has used a MAC strategy in its downstream businesses for years, the company is expanding the concept to make it a center point of an enterprise-wide automation strategy.

"This global framework agreement marks a completely new approach within Shell," said Nick Curley, upstream automation portfolio manager for Shell. "It is a long-term, competitive, collaborative, performance-based relationship that will facilitate the delivery of considerable value to both parties. We will be looking to emulate this approach in many other key global categories in the future."

"This new agreement will put Emerson in a position to substantially broaden its main automation cntractor footprint within Shell," said Ronaldo Marques, general manager, equipment, for Shell’s Enterprise Categories & Suppliers division. "For the first time in history, Emerson will have full and open access to all Shell business units -- Upstream, Downstream, Wind, Power and Biofuels -- plus affiliated joint ventures."

"We have enjoyed a solid relationship with Shell for decades," said Steven A. Sonnenberg, president of Emerson Process Management. "This global framework agreement symbolizes the shared belief our two companies have that early engagement, clear objectives and collaborative work practices result in more predictable success for projects and operations."