Hitachi Plant Technologies said it has inked a corporate procurement agreement (CPA) with Saudi Arabian Oil Company to supply compressors and services for oil and gas plants.

Speaking at the signing ceremony, Hitachi Plant Technologies president and representative director Toshiaki Higashihara said with this it has also become the fourth company to enter an agreement with Saudi Aramco as a compressor manufacturer, and the first Japanese manufacturer to do so.

The agreement specifies basic terms and conditions to simplify and standardize the contract process when purchasing compressors, and other agreement terms regarding participation of Hitachi Plant Technologies in projects ranging from the basic planning stage of new projects to the development of new compressor technologies.

Through this agreement, Hitachi achieves a stronger business relationship with Saudi Aramco, and expects to increase orders through new compressor design and new demand, remarked  Higashihara.

It also expects to enhance the compressor technology standards by participating in new technology development projects, he added.

In addition, Hitachi Plant Technologies is studying the establishment of after-service locations to service and maintain compressors in Saudi Arabia in FY2011 with a field study already started this March.

As a result, Hitachi is looking to expand its maintenance business for compressors shipped to Saudi Aramco through after-service locations soon to be established in Saudi Arabia that will be developed into a future regional manufacturing facility.

Furthermore, Hitachi Plant Technologies plans to develop compressor business opportunities with other GCC*1 countries.

The Japanese group plans to increase its compressor business for oil and gas plants aggressively, mainly in the Middle East, Asia, and South America, where future demand lies, and to achieve revenues of 60 billion yen by 2015, said Higashihara.

It will also aim to accelerate its community-based global development through JVs with customers and partners, expansion of its service business through product lifecycles, and by handling the outsourcing of the maintenance business, he added.-TradeArabia News Service