Announces it has signed a 10-year strategic supplier agreement with Saudi Aramco

Dhahran, December 3, 2008 -- Flowserve Corporation (NYSE: FLS), one of the world's leading providers of flow control products and services for the global infrastructure markets - including oil and gas, power, chemical water and general industries - today announced it has signed a 10-year strategic supplier agreement with Saudi Aramco, one of the world's largest oil producing companies.

The supply agreement includes Flowserve's entire range of flow control products (pumps, valves and seals) and value-added services for use in Saudi Aramco's existing and planned facilities.

Specifically, the new supply agreement will provide for the:

  • Addition of local training centres and educational services that will complement Saudi Aramco's training and Saudisation programmes

  • Streamlining of the procurement process for all new Flowserve equipment, which will include pumps, valves, actuators and mechanical seals

  • Reduction in Flowserve lead times through access to guaranteed production capacity

  • Delivery by Flowserve of aftermarket services to support Saudi Aramco operations through the industry leading Flowserve "LifeCycle Advantage" programme, which is designed to help deliver the lowest possible total cost of ownership through optimising spare parts inventories, reducing life cycle costs, increasing equipment life, and maximising reliability

  • Engagement in a joint product and technology development programme

  • Expansion of Flowserve's locally provided value-added services and operations, supported by Flowserve's extensive global organisation

Flowserve cited its strong aftermarket capabilities, broad product portfolio, technology leadership, and long-standing partnership with Saudi Aramco as key reasons for the expanded relationship.

Flowserve recently invested in a new regional pump Quick Response Centre (QRC) service, repair and manufacturing facility nearing completion in Saudi Arabia, through a joint venture between Flowserve and Al Rushaid Group.

This QRC is located at the Al Rushaid Oil Field Centre in Dhahran, and has been designed to feature the largest pump-testing capability in the Middle East, with a reservoir capable of testing pumps up to 5960 kW (8000 hp).

This QRC will help support the Saudi Aramco supply chain for original equipment, parts and aftermarket services. It will also provide access to Flowserve technology and innovative solutions to help improve equipment reliability and ensure lower costs.

Flowserve has also supported Saudi Aramco's mechanical seal requirements through its QRC joint venture with S & A Abahsain Co. Ltd, located in Al Khobar, since 1989. The mechanical seal QRC has recently doubled its capacity, and is now being expanded to further optimize customer response.

Part of Flowserve's local support will be through the establishment of a local world-class training centre in the Dhahran QRC with both static and power laboratories and classrooms. The objective will be to promote technical and mechanical skills excellence, both internally and externally. This demonstrates Flowserve's continuously expanding support of Saudi Aramco's pumping needs dating back to 1939.

"Flowserve is honoured to be selected by Saudi Aramco for this significant long-term strategic agreement," said Lewis Kling, Flowserve President and Chief Executive Officer.

"This new agreement demonstrates our commitment to our customers in the areas of industry-leading products, broad end-user solutions, localised service and support, as well as the in-country resources and aftermarket services."

Kling added that "Flowserve is committed to supporting Saudi Aramco and our other customers in the Middle East region, and the company plans to continue to support that commitment through expansion of local infrastructure and services."

-Ends-

About Flowserve Corporation
Flowserve Corp. is one of the world's leading providers of fluid motion and control products and services. Operating in more than 55 countries, the company produces engineered and industrial pumps, seals and valves as well as a range of related flow management services. More information about Flowserve can be obtained by visiting the company's website at www.flowserve.com.

About Saudi Aramco
Owned by the Saudi Arabian Government, Saudi Aramco is a fully-integrated, global petroleum enterprise, and a world leader in exploration and producing, refining, distribution, shipping and marketing. The company manages proven reserves of 260 billion barrels of oil and manages the fourth-largest gas reserves in the world.

In addition to its headquarters in Saudi Arabia's Eastern Province city of Dhahran, Saudi Aramco, through its affiliates, has joint ventures and subsidiary offices in China, Japan, Netherlands, the Republic of Korea, Malaysia, Singapore, the United Arab Emirates, the United Kingdom and the United States. More information about Saudi Aramco can be found at www.saudiaramco.com. For press information, please contact: international.media@aramco.com.

For more information, contact:
Stephen Worsley/Hala Sarieddine
ASDA'A Burson-Marsteller
Tel: +9714-3344550
Fax: +9714-3344556
Email: s.worsley@asdaa.com/h.sarieddine@asdaa.com

© Press Release 2008