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Fluor and Technip sign Shell engineering frame agreements

Fluor selected for Shell downstream projects in EMEA 

On November 2nd, 2012, Shell and the US Fluor Corporation (Fluor) signed a 5 years enterprise framework agreement for engineering and management services.

On November 15th, 2012, it was the turn of the Paris-based Technip to ink with Shell Global Solutions a similar 5 years frame agreement.

If the process is the same in both cases, the content of these frame agreements is different.

Fluor‘s enterprise framework agreement is applying to Shell:

 – Downstream projects

 – Potentially upstream projects if onshore

 – Europe

 – Middle East

 – Africa

According to the terms of the frame agreement, Fluor will provide Shell with engineering services covering:

 – Design

 – Project and construction management

 – Home-office and site-based engineering services.

Beyond its commercial and financial aspects, this frame agreement, reflects the years of cooperation between Shell and Fluor on these activities for some years.

On greenfield projects Fluor is currently engaged with design and construction work in Canada, Malaysia and Philippines

Regarding the brownfield activities, Fluor is providing Shell with local operations and maintenance services in Australia, Netherlands, Qatar and Russia.

This frame agreement may be expanded for another period of 5 years and the opportunity to add upstream projects and other regions.

Founded in 1912, this success with Shell enterprise framework agreement crowns Fluor 100 years of experience in design, engineering, procurement, construction commissioning, project management, operations and maintenance services in six continents.

Technip awarded for Shell Asia Pacific offshore projects

Managed by Shell Global Solutions Sdn Bhd in Kuala Lumpur, Malaysia, the enterprise framework agreement signed with Technip has a different scope in terms of applications and geographical definition.

Technip and Shell frame agreement will apply to:

 – Oil and gas offshore projects

 – Asia

 – Australia

 – New Zealand

In this Asia Pacific region defined, as East Region, Technip will provide engineering and management services including:

 – pre-front end engineering and design (pre-FEED)

 – Front end engineering and design (FEED)

 – Detailled design engineering

 – Procurement services

 – Construction management

Since Shell Global Solutions for the East region is based in Malaysia, both parties defined Technip main regional office in Kuala Lumpur as the operating center of the frame agreement.

Then Technip Kuala Lumpur will get the support from the other Technip offices in the world when necessary.

Through these enterprise framework agreements, Shell intends to save time and money in :

 – Avoiding the bidding phase

 – Speeding up the FEED work in using replication

 – Building up experience between projects

 – Anticipating resources mobilization at construction phase

These decisions come in synchronization with critical projects:

 – In Middle East, Shell is gearing up with Qatar Petroleum Al-Kaarana olefin complex in Ras Laffan and with Saudi Arabia Sadaf expansion in joint venture with Sabic.

 – In Asia Pacific, Shell is planning the deployment of its unique floating liquefied natural gas (FLNG) concept with Prelude, currently constructed by Technip and Samsung, to come first and soon followed by series of other similar FLNG requiring specific offshore support and services for the installation, commissioning and operations.

The size and complexity of these projects upstream and downstream will mobilize all Shell resources for which a close cooperation with the engineering companies such as Fluor and Technip will be the key to success through these enterprise framework agreements

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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