Rolls-Royce awarded $30m contract by Shell in Philippines

Monday, 30 April 2012

Rolls-Royce, the global power systems company, has won a $30 million order from Shell to supply two industrial RB211 gas turbines to boost gas output from the Malampaya deepwater natural gas project in the Philippines.

Shell has used Rolls-Royce technology as the mechanical driver for the project’s gas compression trains since start-up in 2001. The additional two RB211 units will enhance production output and efficiency, helping assure a stable supply of energy and a cleaner source of power for the Philippines.

Tony Ruegger, Rolls-Royce, Executive Vice-President – Oil & Gas said: “We are delighted that after eleven years of successful collaboration on this important project Shell has again put its trust in Rolls-Royce. The proven reliability and efficiency of our equipment will help the Malampaya project partners maintain high levels of gas production, ensuring that the Philippines continue to access dependable supplies of electricity.”

Each RB211 unit will produce 27 megawatts of power to drive gas compressors, enabling gas production to be boosted as natural pressure within the gas field reduces with extraction.

Compared to equivalent energy generation using coal or fuel oil, the Malampaya natural gas project displaces an estimated 1.35 million kilograms of CO2 per hour and is therefore a cleaner and more sustainable source of energy. Each RB211 unit will feature Rolls-Royce low emissions technology to minimise environmental impact.

Over 60 Rolls-Royce RB211 gas turbines are already in offshore service throughout Asia, serving leading operators including Shell, ExxonMobil and Petronas. More than 600 Rolls-Royce gas turbines serve oil and gas operations worldwide, often operating offshore in harsh environments.

The contract was awarded under a global frame agreement, signed in 2007, between Rolls-Royce and Shell Philippines Exploration B.V. (SPEX) which operates the Malampaya project on behalf of joint venture partners Chevron Malampaya LLC and the Philippine National Oil Company Exploration Corporation (PNOC EC).

  1. Rolls-Royce is a world-leading provider of power systems and services for use on land, at sea and in the air, and has established a strong position in global markets - civil aerospace, defence aerospace, marine and energy.
  2. As a result of this strategy, Rolls-Royce has a broad customer base comprising more than 500 airlines, 4,000 corporate and utility aircraft and helicopter operators, 160 armed forces, more than 4,000 marine customers, including 70 navies, and energy customers in more than 80 countries.
  3. Annual underlying revenues were £11.3 billion in 2011, of which more than half came from the provision of services. The firm and announced order book stood at £62.2 billion at 31 December 2011, providing visibility of future levels of activity.
  4. Rolls-Royce employs 40,400 people in offices, manufacturing and service facilities in over 50 countries. Over 11,000 of these employees are engineers.
  5. In 2011, Rolls-Royce invested £908 million on research and development, two thirds of which had the objective of further improving the environmental performance of its products, in particular reducing emissions.
  6. Rolls-Royce supports a global network of 28 University Technology Centres, which connect the company’s engineers with the forefront of scientific research.
  7. The Group has a strong commitment to apprentice and graduate recruitment and to further developing employee skills.
  8. Located some 3,000 meters below sea level, the Malampaya gas field currently supplies natural gas to three power stations which generate a combined 2,700 megawatts of electricity – enough to provide some 40 per cent of the power needed by the main Philippine island of Luzon, where more than half the nation’s 80 million people live.
  9. The equipment will be manufactured and packaged at the Rolls-Royce facilities in Montreal, Quebec, Canada and Mount Vernon, Ohio, U.S., ready for shipment from February 2013 and entry into commercial service planned for 2015.

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