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Aramco to improve power supply efficiency through Siemens Energy

Vice-president of procurement & supply chain management at Aramco, Mohammad Al-Shammary signs the contract during a virtual signing ceremony (Image Source: Siemens Energy)

Siemens Energy has signed its first long-term service agreement (LTSA) with Aramco, covering a range of turbines and generators at four major oilfields

The 15-year contract is expected to enable Aramco to improve reliability, efficiency, and availability of power supply, thereby safeguarding oil and gas production. The agreement will enable Aramco to benefit from Siemens Energy?s comprehensive warranties and extended service support, increasing the availability and the reliability of the power supply for these strategically important assets. Furthermore, Siemens Energy will ensure resilience by providing the necessary resources and material availability in the Kingdom of Saudi Arabia to face in case of any emergency. 

?Siemens Energy is a strategic partner and a trusted service provider, that can ensure reliable power supply at these major oilfields, helping improve operational excellence and continuously enhancing the performance of our strategic assets,? said Mohammad Al-Shammary, procurement and supply chain management vice-president at Aramco.

The agreement with Aramco will also enable Siemens Energy to expand localisation plans through the development of high-tech industry and training of a skilled Saudi workforce, to increase job expertise and raise domestic capabilities in Saudi Arabia, whilst benefitting the local economy.

Siemens Energy?s activities will meet the requirements outlined in the In-Kingdom Total Value Add Program (IKTVA), which was created by Aramco to baseline, measure, and support increased levels of localisation.

?Siemens Energy is dedicated to providing and ensuring stable, efficient and resilient power supply to Aramco, while delivering value beyond the scope of the contract, by contributing to the local economy and developing the skills and employability of Saudi nationals,? said Mahmoud Sulaimani, managing director of Siemens Energy Saudi Arabia.  

Siemens Energy?s Service Workshop, formerly known as ISCOSA, is currently in the relocation phase to the Siemens Dammam Energy Hub, Siemens Energy?s largest gas turbine and compressor manufacturing facility in the region, which includes a full-fledged service set up to cover the entire product lifecycle. The Hub?s advanced Service Workshop is where any kind of rotating equipment can be serviced, from small repair work over pumps, gears to compressors, heavy generators, and large gas turbine rotors with their Hot Gas Parts. 

?This long-term service agreement is expected to help achieve the highest efficiency, reliability and availability of Aramco?s plant, with optimised parts management and with a core local team dedicated to the plants? needs. We wish to thank Aramco for trusting Siemens Energy and we hope that this long-term service agreement with Aramco will be the first of many,? added Gianluigi Di Giovanni, vice-president of generation & industrial service Middle East and North Africa at Siemens Energy.