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Yokogawa wins big business in MAC deal with Shell

Yokogawa is the second automation and control vendor to be named a main automation contractor (MAC) by Shell this week for integrated production control and safety instrumented systems.

Shell has signed a Global Framework Agreement (GFA) with both Yokogawa and Emerson, meaning they will be competing for Shell automation contracts on a regular basis in the future.

Since last year, Shell has been working to reduce the number of equipment and systems suppliers for its plants, and has assessed and narrowed down the list of contractors that it works with in the control systems field, according to Yokogawa.

Shell and Yokogawa already have a strong working relationship, and Shell is one of Yokogawa’s biggest customers, Yokogawa says.

According to Yokogawa, Shell chose the company as a MAC because of its outstanding delivery record to Shell, highly reputed technologies, and strong health, safety, security and environment (HSSE) policy.

The contract includes ongoing maintenance of systems and the supply of new systems for both brownfield and greenfield projects.

The agreement brings advantages to both companies by improving the efficiency of the activities undertaken by buyer and supplier.

The move is part of Shell’s initiative to achieve top quartile performance across categories in support of its ‘More Upstream, Profitable Downstream’ strategy.

Nick Curley, Shell’s Upstream Automation Portfolio Manager, says, “This GFA marks a completely new approach within Shell: this is a long term, competitive, collaborative and performance based relationship that will facilitate the delivery of value to both parties.”

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