Flowserve to Enter 3 Mega Energy Projects

March 26, 2009
Tom Arnold, Arabian Business News

Flowserve Corporation, a US maker of industrial pumps, is set to be involved in three mega energy projects in the Gulf during 2009 and 2010, a senior director with the firm said on Wednesday.

The company would be involved in two major export refineries Saudi Aramco was developing in Saudi Arabia, one a joint venture with Total and the other with ConocoPhillips, said James Quain, vice president and general manager, worldwide sales and customer service, Flowserve pump division.

Flowserve signed a 10-year agreement in December 2008 with Aramco, one of the world's largest oil producing companies, to become the strategic supplier of flow control products including pumps, valves and seals.

The company would also be involved in Kuwait National Petroleum Company’s (KNPC) Clean Fuels project, which was expected to come online in 2010, said Quain.  

The prequalification process for a series of engineering, procurement and construction contracts closed last month for the project which covers the upgrade of the Mina al-Ahmadi and Mina Abdullah refineries to boost their combined capacity from 736,000 to 800,000 barrels a day.

“They’re quite a few mega projects coming in on the horizon in this area,” Quain said in an interview. He declined to give a valuation of the projects.

Flowserve on Wednesday announced the opening in Dubai of its Quick Response Centre (QRC), a manufacturing, repair, refurbishment services and engineering applications support facility for pump and mechanical seal products.

Located at the Jebel Ali Free Zone (JAFZA), the facility is designed to support its customers in the region in sectors including oil and gas, petrochemical, power, water, desalination, chemical and industries.

It follows the company announcing on Sunday the launch of a similar facility in Saudi Arabia, the largest pump manufacturing, repair and testing facility in the Middle East.

The firm has around 100 customers in Dubai and 300 customers in Saudi Arabia.  It has 180 of the special centres around the world.

Lewis Kling, Flowserve president and chief executive officer, said the company would see some impact from some oil and gas companies reigning in infrastructure spending due to lower revenues from a drop in the price of oil.  

But he said the firm was expecting similar financial results for 2009 as 2008, with a projected earning per share of between $6.75 and $7.50.

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