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2010 Press Releases-03

Tokyo, Japan - February 10, 2010

Yokogawa Selected by Shell as a Main Automation Contractor Establishing a New Alliance as Worldwide Partners

Yokogawa Electric Corporation announces that it has been selected by Shell as a main automation contractor (MAC) for integrated production control and safety instrumented systems, and that the two companies have signed a Global Framework Agreement (GFA).

Since last year, Shell has worked 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. Thanks to its outstanding delivery record to Shell, highly reputed technologies, and strong health, safety, security, and environment (HSSE) policy, Yokogawa was chosen to be one of Shell’s main suppliers. 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."

With this agreement, Yokogawa has successfully strengthened its partnership with the Shell Group and its business with the Group will increase. Encouraged by this contract, Yokogawa will expand its control business worldwide.

About Yokogawa

Yokogawa's global network of 19 manufacturing facilities and 85 companies spans 40 countries. Since its founding in 1915, the US$4 billion company has been engaged in cutting-edge research and innovation, securing more than 8,000 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


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