Rolls-Royce and Dolphin Energy Limited have finalised a Long Term Service Agreement (LTSA) to support six Trent-powered compressor sets for the Export Gas Pipeline from Qatar to United Arab Emirates.
This follows the original order for the Trent equipment announced in January this year.
The initial stage of the agreement is worth more than $40 million and covers a six-year term, with an option to renew for four additional six-year terms. In total, the agreement could last 30 years and be valued at over US$300 million.
Tom Curley, President of the Rolls-Royce energy business, said: 'We are delighted to welcome Dolphin Energy as one of our important LTSA customers. With this agreement we have entered into a partnership with Dolphin that is focused on maximising their profitability and unit availability. Our Long Term Service Agreements create partnerships designed to control the operator's maintenance budgets and free them of risk and responsibility'.
The six Rolls-Royce mechanical drive industrial Trent Dry Low Emissions (DLE) compression packages will be at Ras Laffan, Qatar at the start of the 400-kilometre pipeline. They will provide front-end gas compression for the pipeline's dry gas throughput.
Rolls-Royce will maintain the industry-leading degree of availability on the equipment by installing health monitoring systems on each of the units, giving operators access to technical support 24 hours a day.
The Dolphin project, one of the largest energy-related projects currently being undertaken in the Middle East, will produce and supply natural gas to the United Arab Emirates for at least the next 25 years.
-Ends-
Corporate note to editorsRolls-Royce operates in four global markets - civil aerospace, defence aerospace, marine and energy. It is investing in technology and capability that can be exploited in each of these sectors to create a competitive range of products.
The success of these products is demonstrated by the company's rapid and substantial gains in market share over recent years. The company now has a total of 54,000 gas turbines in service worldwide. The investments in product, capability and infrastructure to gain this market position create high barriers to entry.
Rolls-Royce has a broad customer base comprising more than 500 airlines, 4,000 corporate and utility aircraft and helicopter operators, 160 armed forces and more than 2,000 marine customers, including 50 navies. The company has energy customers in nearly 120 countries. Rolls-Royce employs around 35,000 people, of which 21,000 are in the UK. Forty percent of its employees are based outside the UK - including 5,000 in the rest of Europe and 8,000 in North America.
The large installed base of engines generates demand for the provision of services. A key element of the company's strategy is to maximize services revenues, which have increased by 60 percent over the past five years, by the provision of a comprehensive portfolio of services.
Annual sales total nearly 6 billion, of which 50 percent are services revenues. The order book is over 18 billion, which, together with demand for services, provides visibility as to future activity levels.
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For more information, please contact:
Gary Hyman
Head of Communications - Energy Business
Rolls-Royce
Tel: 00 1 740 393 8888
Email: gary.hyman@rolls-royce.com
Web www.rolls-royce.com
Richard Catling
Crest Communications (PR) Limited
Tel: 00 44 24 7664 2428
Email: crestcomms@aol.com
© Press Release 2004
