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Yokogawa Electric Corporation

2006 Press Releases-30

Tokyo, Japan - November 29, 2006


Yokogawa Signs Sole Source Agreement with
Shell Exploration & Production for Monitoring and Control Systems
- For greenfield and facility improvement projects to be executed in the Gulf of Mexico -


Yokogawa Electric Corporation announces that Yokogawa Corporation of America, a North American subsidiary, has concluded a sole source agreement with Shell Exploration & Production Company, USA (Shell E&P) of the Shell Group. Over the five-year contract term, Yokogawa will be the sole provider to Shell E&P of monitoring and control systems to be used in their facilities in the Gulf of Mexico, North America.

Under the terms of the contract, Yokogawa will deliver CENTUM™ CS 3000 monitoring and control systems as well as ProSafe-RS™ safety instrumented systems for facility improvement projects. These projects involve crude oil and natural gas production facilities located in the Gulf of Mexico.

As part of these projects, Shell E&P will be upgrading the existing monitoring & control, safety shutdown, and fire & gas systems of several existing production facilities in the Gulf of Mexico. Also planned is the construction of Ursa Water-Flood facilities and the Perdido Regional Development Host to develop the Great White, Tobago and Silvertip Fields located in Alaminos Canyon, offshore Gulf of Mexico. Moored in about 8,000 feet of water, the regional direct vertical access spar capable of handling 130,000 boe (= barrels of oil equivalent) per day will be the deepest spar production facility in the world.

For these facilities, Yokogawa will deliver the CENTUM CS 3000 R3 Integrated Production Control System and the ProSafe-RS Safety Shutdown and Fire & Gas Detection System.

"Yokogawa is extremely honored to receive this contract from Shell," said David Johnson, President and CEO of Yokogawa Corporation of America. "It will involve Yokogawa in all aspects of the projects from application engineering to systems integration. We consider this a very positive next step in strengthening our long-term relationship with Shell. The work in the Gulf of Mexico will be some of the largest and most complex projects we have done with them and bring into play some ground-breaking technologies."

Yokogawa has been awarded this important contract as a result of the Shell Group's very positive evaluation of the company's delivery of more than 200 systems during the past 20 plus years, as well as its proven project execution capabilities, cost competitiveness and Customer Centric Solutions approach. In April 2005, Yokogawa also signed a strategic supplier contract with the Shell Group, under which it provides Shell with products, engineering, and maintenance services.

About Shell E&P
Shell E&P is engaged in the upstream activities of acquiring, exploring, developing and producing oil and gas. The Shell Exploration and Production business searches for and recovers oil and natural gas and is the foundation of the petroleum industry with business in more than 38 countries around the world and employs around 28,000 staff including contractors.

About Shell Oil Company (U.S.)
Shell Oil Company is an affiliate of the Shell Group, a global group of energy and petrochemical companies, employing approximately 109,000 people and operating in more than 140 countries and territories. Approximately 22,000 Shell employees are based in the U.S.
   
Shell Oil Company, including its consolidated companies and its share in equity companies, is one of America's leading oil and natural gas producers, natural gas marketers, gasoline marketers and petrochemical manufacturers. Shell E&P, a leading oil and gas producer in the deepwater Gulf of Mexico, is a recognized pioneer in oil and gas exploration and production technology.

About Yokogawa
Yokogawa's global network of 18 manufacturing facilities, 81 companies, and more than 650 sales and engineering offices spans 30 countries. Since its founding in 1915, the US$4 billion company has been engaged in cutting-edge research and innovation, securing more than 7,000 patents and registrations, including the world's first digital sensors for flow and pressure measurement. Industrial automation and control, test and measurement, information systems and industry support are the core businesses of Yokogawa. For more information about Yokogawa, please visit our web site at www.yokogawa.com.

About Yokogawa Corporation of America
Yokogawa Corporation of America is the North American unit of $4 billion Yokogawa Electric Corporation, a global leader in the manufacture and supply of instrumentation, process control and automation solutions. Headquartered in Newnan, Georgia, Yokogawa Corporation of America serves a diverse customer base with market-leading products including analyzers, flow meters, transmitters, controllers, recorders, data acquisition products, meters, instruments, distributed control systems, and more. For more information about Yokogawa Corporation of America, visit www.yokogawa.com/us/, call 770-254-0400, or toll-free at 800-258-2552, or e-mail info@us.yokogawa.com.




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