A PUBLICATION OF THE DRESSER-RAND COMPANY

insights

VOLUME 4, NO. 2
Featured in this issue of insights:

Statoil Extends Frame Contract Alliance With Dresser-Rand Dresser-Rand Meets Demanding Deadline To Provide Gas To Beijing Availability PLUS, A Concept Of Pay For Performance

insights
VOLUME 4, NO. 2

CONTENTS 1 Candid Visions: Dresser-Rand Product Services Demonstrates Companys Range Dresser-Rand Executive Vice President of Product Services, Walt Nye, discusses how this group exemplifies the companys broad scope of services. Dresser-Rand Meets Demanding Deadline To Provide Gas To Beijing Dresser-Rand supplies compression equipment to a remote natural gas pipeline in China. Dresser-Rand Assists U.S. Navy With Reducing Costs While Increasing Equipment Reliability New automated technologies and innovative design processes assist the Navy in making its carriers more cost-effective. Availability PLUS, A Concept Of Pay For Performance The pay for results concept has raised the bar for performance based contracts at Dresser-Rand. DATUM Milestone Confirms Success In less than five years, Dresser-Rand has designed, manufactured and installed more than 100 DATUM centrifugal compressors. Statoil Extends Frame Contract Alliance With Dresser-Rand With the original contract surpassing all expectations, Statoil and Dresser-Rand extend the alliance for an additional three years. Magnum Valves Running Strong For Tosco Dresser-Rand Magnum valves improve compressor reliability at Toscos Woodriver oil refinery. Engineers Notebook: Reliability and Efficiency Optimization of Centrifugal Compressor Trains by the Application of Advanced Revamp Techniques and System Upgrades Profile: Ravi Sukhia With nearly 40 years experience, Ravi Sukhia helps bring Dresser-Rands Naroda, India, plant on-line. Global Visions: Dresser-Rand Offers Guide To DATUM Centrifugal Compressors Dresser-Rand Offers Guide To GLT Steam Turbine Engine Dresser-Rand To Supply Gas Transmission Equipment Dresser-Rand and BDI, Inc. Form Three-Year Alliance Dresser-Rand To Supply Compression Systems For Gas Transmission In India www.dresser-rand.com For more information on Dresser-Rand, as well as technical articles and past issues of insights magazine, visit our website at www.dresser-rand.com.

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for the Hibernia project. (See related article on page 6.) The program bundles services ranging from technical assistance to full operations, as well as maintenance and long-term performance contracts. Many oil companies and others in the energy chain are seeing wisdom in outsourcing non-core business functions to a company such as Dresser-Rand, and the company is fulfilling that need and devising new ways to serve clients. At Petroleus de Venezuela S.A. (PDVSA) in Anaco, Venezuela, Dresser-Rand completed a five-year contract to own, operate and maintain six compression stations. Performance during the five-year span averaged 99 percent availability an extraordinary feat. The contract expired in early April and is being revised as PDVSA relocates some of its stations to accommodate production needs. Recently, in Nigeria, Product Services signed a contract for revamping equipment and providing operation and maintenance at the Obigbo field. The construction and commissioning phase exceeds $1.5 million. Also in Nigeria, Shell Oil just signed a three-year $20+ million contract with Dresser-Rand to refurbish, operate and maintain equipment at five stations some of which

were manufactured by companies other than Dresser-Rand. Dresser-Rand has experienced a proliferation of service centers. Last year, it opened a service center in Indonesia and a few months ago, Dresser-Rand signed a formal service alliance with Flowserve Corporation, which has more than 4,000 pumps operating in Indonesia. The company has also opened a service center in Uzbekistan to serve natural gas operations in west-central Asia. In 2000, Dresser-Rand acquired Brazil-based, Engeturb, which today is known as Dresser-Rand Brazil a manufacturer of small steam turbines and service center for turbomachinery, reciprocating and steam turbine equipment. The past year and a half has demonstrated Dresser-Rands commitment to the industries it serves, from oil fields to process operations. The view of these new product service contracts provides just a glimpse of the scope of Dresser-Rands expanding activities, but clearly demonstrates that Dresser-Rand is developing solutions and innovative offerings to make our clients more competitive and successful.

Dresser-Rand Product Services Demonstrates Companys Range

To many of its clients, Dresser-Rand is seen as a first rate original equipment manufacturer whose technological expertise and advancements have kept it at the forefront of its industry, building custom-engineered equipment for a specific set of conditions. However, this is only a portion of what Dresser-Rand has to offer. Perhaps a good way to look at DresserRands broad scope is through its Product Services group that serves its clients with an installed base of equipment. Over the last two years, Product Services activities have expanded and touched upon every phase of product and service the company has to offer, many of which are new.

Lets start with Hibernia, a new and large natural gas field in Iceberg Alley off the coast of Newfoundland, Canada. For this application, Dresser-Rand supplied two gas compression trains for the platform, which went on-line in November 1997. By last September, however, Hibernias gas compression had less than an 80 percent availability rate. Hibernia contracted with DresserRand Product Services for the operation, maintenance and servicing of the rotating equipment. The results were dramatic. Dresser-Rand and Hibernia worked closely together and from January 2000 to June 2001 the availability rate was 97 percent, far exceeding Hibernias expectations. Dresser-Rand earned a bonus and Hibernia gained a tremendous benefit. Dresser-Rand used its new Availability PLUS program

Walter Nye Executive Vice President Dresser-Rand Product Services

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Dresser-Rand Meets Demanding Deadline To Provide Gas To Beijing

Deep in the interior of China, west of Beijing, Dresser-Rand engineers arrived for a precommissioning meeting in the Shanxi Province to find mounds of dirt requiring transformation into a natural gas pipeline compression station within two months. No footings had been laid. Expecting to see buildings...I saw dirt, said Barry Fitzgerald, project engineer for Dresser-Rand, who is based in Olean, New York. Political pressure left it unsaid at these meetings, but privately those aware of the extreme challenge left to the client and Dresser-Rand agonized over the results of missing the deadline for gas delivery to Beijing. Gas pressure in Beijing was already so low that the winter home heating season loomed large. Public transportation depended on compressed natural gas fueled buses that were essentially garaged for lack of a fuel supply. Regardless of the remote rural location, aggressive schedule, and the clients complete lack of experience with centrifugal compression equipment, the political pressure on Beijing Gas Transmission Company to commission these units on time was enormous. The pipeline extended 860 kilometers to Beijing from the Changqui Gas Field in Shaanxi Province. The two compression stations are in the Shaanxi and Shanxi provinces. The Yingxian Station [Shaanxi Province] compression trains consisted of two duplicate parallel trains integrating single skid mounted motor, gear, compressor, lube systems, and gas seal system, and additional extended scope items including process gas and oil coolers and Dresser-Rand Controls. The Huanghexi Compressor Station [Shanxi Province] units consisted of the gas turbine driven compressor, gas seal system and other extended scope items, with Solar Turbines as the prime contractor. With a client experienced at building pipelines, we thought it would have taken three months working frantically to complete it. We had two months. Nevertheless, the dedication of our client and Dresser-Rand field and factory personnel to addressing these challenges was commendable and certainly tendered results, Fitzgerald recalled. Service reps working 16, 17 hours a day at the site and sleeping only four so they had time to correspond with factory personnel considering the time difference was typical of the schedule seven days a week. The Chinese field crews worked through the night with headlamps to meet the needs of Beijing. Contrary to the worries of many, these projects established a benchmark in China. The Chinese Officials were relieved with the on-time gas delivery and high ranking government representatives have been touring the installations on a regular basis since, Fitzgerald added.

Dresser-Rand has maintained a presence in China for decades, said Dennis Cook, manager of business development who is based in Dresser-Rands Olean facility. Cook is an old China hand with more than 40 extended trips there since 1990, and he predicts an increase in business there over the next five years. Activity is ramping up, Cook said. Chinas new five-year plan began this year with the Chinese New Year on January 24th. This is the 11th five-year plan for the country. About halfway through the 10th five-year plan, China began reorganizing its vertically integrated energy agencies. They reevaluated their strategic direction, Cook explained. The China Petrochemical Corporation (Sinopec) was the downstream refining and distribution agency and China National Petroleum Corporation (CNPC) was involved in upstream exploration and production. They are divided geographically with Sinopec in the south, and CNPC operating in the north and west. There was a swapping of assets and the two organizations now conduct both downstream and upstream operations. Last year, CNPC set up a holding company, PetroChina, to raise cash as a semi-

privatization effort. PetroChina is traded on the Hong Kong market and American Depository Receipts are traded on Wall Street. Multinationals with an interest in oil and natural gas production and distribution in China are anteing up. Exxon, for example, made a substantial investment in PetroChina last year, according to the Energy Information Agency (EIA) of the U.S. Department of Energy. Chinas petroleum resources are vast and only sparingly tapped. It does, however, operate the Daquing Oil Field, the fourth largest in the world. Natural gas holds significant promise, according to both Cook and the EIA, which tracks world oil and natural gas production and usage. Chinas natural gas usage

increased nearly 70 percent from 1990 to 1999, from 504 billion cubic feet (bcf) to 854 bcf. Even at that, most of Chinas natural gas is either reinjected at the oil field or flared off, Cook said. Natural gas hasnt been a major fuel in China, mostly because of its vast resources of coal (China is the largest consumer and producer of coal in the world). Gas currently amounts to only three percent of total energy used, but China has begun a major expansion of its gas infrastructure, according to the EIA. The agency predicts that gas consumption will triple by 2010. There is a project that would link Russia to China, North Korea and South Korea. This is a gas pipeline emanating from Irkutsk in Siberia. It may take the entire five-year plan to negotiate the contract.

Irkutsks natural gas supply has been described as virtually unlimited. But this will take serious negotiations, particularly with North Korea and South Korea. South Korea would be the major end user. A feasibility study is expected to be completed this year. The Changqi Gas Field in Shanxi Province, where the pipeline originated and Dresser-Rand installed its compression equipment, has estimated reserves of 2.5 trillion cubic feet. Shell Oil has been involved in studies to exploit this field further with CNPC. Gas consumption is being driven by environmental concerns. The major industrial centers of China are suffering from heavy air pollution associated with particulate matter generated by coal burning. It is having an adverse affect on not only health, but industrial output as well. The real rise in natural gas use began about 1995, according to the EIA. Expansion of Chinas gas infrastructure will create huge opportunities for

foreign investment, and foreign partners are being sought for both upstream and down-stream gas projects, the EIA reported a year ago. I look for a pretty active time over the next five years, Cook said. It may slow down a little in the third year of the five-year plan. But he expects that to be sandwiched in between two good years in the beginning and two very good years at the end. Boding well for Dresser-Rand and other Western manufacturers of key equipment for oil and gas industries in China is the countrys philosophical shift, Cook said. Its a real cultural change, he explained. In the past the Chinese bought on price and price alone. The greater efficiencies of our equipment made no difference to them. But that has changed recently. Now directives have been issued that costs of end products are too high, and that the product has to be produced more efficiently, Cook explained. This means they are going to be taking a harder look at technology to be more efficient. Theyve learned that downtime costs. He figures this philosophical shift will manifest itself over the next five years. In our business, nobody has invested more in research and development and technology than has DresserRand. China will be importing more of this technology now.

Dresser-Rand Assists U.S. Navy With Reducing Costs While Increasing Equipment Reliability
Reliable equipment is a critical component for any business, but it takes on greater significance when a nations defense depends on it. Called the backbone of the United States defense, the Navys nuclear-powered aircraft carriers are being changed to reduce operations and support costs. Proven to be a highly effective tool of diplomacy and war, the Nimitz-class carrier, also referred to as a floating city, has an overall length of 1,092 feet and an extreme breadth of 252 feet. It is manned by 3,500 personnel not including the air wing making it a fairly expensive city to operate. To make carriers more costeffective, the Navy has decided to reduce personnel on its CVNX aircraft carrier, which places a greater emphasis on the reliability of its onboard equipment. To meet this challenge, the Navy is turning to private contractors, such as DresserRand, to assist in implementing new automated technologies and innovative design processes aimed to reduce ship maintenance and personnel requirements, without sacrificing operational capabilities. The ultimate goal is to have equipment operate at peak for the 50-year life cycle of the carrier.

To reduce its administrative costs, the Navy will begin by initiating long-term contracts for quotes, evaluations and ordering of equipment, which will tie in with OEM suppliers. These extended contracts will be for a 5-15-year period and will be supplied on an agreed upon yearly index rate, said Dennis Norton, director, Government Business Unit for Dresser-Rand.

As a leading manufacturer of steam turbines and compressors for the worlds leading oil and energy producing companies, Dresser-Rand is also a veteran supplier of equipment to the Navy. The companys Painted Post, New York, and Wellsville, New York operations have provided reciprocating compressors and steam turbines to the Navy since before World War II, and has equipment onboard approximately 75 percent of the Navys current fleet.

With the aircraft carriers out at sea for months at a time, reliable equipment becomes critical. Similar to oil platforms, the aircraft carriers are often in remote parts of the world where complete overhauls and maintenance checks are virtually impossible to conduct on a routine basis, Norton said. Ideally, five-year overhauls are completed on the carriers. To provide total life cycle support, Dresser-Rand is pursuing a Performance Based Logistics (PBL) contract with the Navy. As a cost saving measure, the PBL contractor manages the governments equipment inventory and all of the logistic functions as well as providing configuration control

and the necessary upgrades to maintain the technology throughout the life of the carrier. A reduction in inventory means a reduction in cost, added Norton. The Navy is also considering the use of an open architecture network on all of its aircraft carriers. The modular design of the electrical power distribution system would provide a common power source to improve configuration flexibility and facilitate maintenance, which would allow future modifications to be easily incorporated. Dresser-Rand will develop compressors and controllers for this project, which can readily be tied into the open architecture system. A central monitoring control room will be used in conjunction with the new architecture system, which will enable one person to monitor all equipment onboard the ship from a central control room. The information will then be

relayed to a satellite or homeport for engineering support. Similar to Dresser-Rands remote monitoring system, Global Access, which is intended for remote installations such as oil platforms or pipeline applications, data is brought to the user instead of forcing the user to go to the data, Norton explained. The system can be used to monitor and control any type of machinery and provides a tremendous cost savings in terms of maintenance and repair. To support the Navys efforts in reducing life cycle costs, Dresser-Rand hopes to position itself as an Approved Boat Repair (ABR) shop. As an ABR, Dresser-Rand would have the opportunity to quote on repair of all equipment aboard the ship. Dresser Rands continual upgrade implementations significantly increase reliability, thereby reducing maintenance time and total life cycle costs. These savings are utilized by the Navy to increase the peace keeping and war fighting effectiveness and provide for our nations defense.

Availability PLUS, A Concept Of Pay For Performance

Dresser-Rand has given it a unique identity Availability PLUS but its a concept whose evolution began more than a decade ago. Pay for performance. From the resolution of habitual maintenance problems to full-blown operation and maintenance programs, more than a dozen Dresser-Rand clients around the world are currently experiencing the benefits of Availability PLUS, paying for contracted results, and adding a bonus when expectations are surpassed. Basically, the client pays for results rather than just a product or parts or service, said Luis Rojas, director of Availability PLUS in Houston. The client and Dresser-Rand agree upon a certain level of performance. If we meet their expectations, we are paid the full amount. If we fall below, our compensation is reduced. Fortunately, weve been exceeding our goals and receiving bonus payments from pleased clients. Typically, performance based contracts include the following metrics: Availability Reliability Capacity (gas compressed or power produced) Energy consumption (efficiency) Spare parts inventory reduction Safety Any other performance metrics the client may require.
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Dresser-Rands concept began during the 1980s in the Middle East as service contracts. These contracts evolved into operation and maintenance contracts. By the 1990s, they further evolved into build-ownoperate-maintain contracts, which were particularly effective in Latin America. In 1995, Dresser-Rand recognized an early trend among some of our clients for outsourcing. We identified it as a potential strategic direction for the company, said Larry Betche, marketing manager for Availability PLUS. We also had clients approach us to assume a greater risk than as our traditional role of equipment supplier. Dresser-Rand formed a team to develop a business plan for machinery healthcare based on the pay for performance concept. By early 1996, the plan was ready but the marketplace wasnt. We found that we were a little bit ahead of the market for these outsourced services, Betche said. Prospective clients were thinking about it, but not quite ready to make the cultural change from transactional to performance based contracts. But Petroleos de Venezuela S.A. (PDVSA) took a major plunge with a five-year contract for Dresser-Rand to build, own, operate and maintain compression

stations in Anaco. The contract, valued at more than $130 million, called for six turbocompressor packages. Each package included Solar MARS 100 gas turbine drivers and two DresserRand centrifugal compressors along with associated auxiliary systems and control panels. The contract expired in early April this year. During the five years, the stations operated at very high availability, far exceeding the clients expectations, Rojas said. There was more to the success of Anaco than gas availability, according to Maged Mikhaeil, area operations manager for Availability PLUS in Latin America. We managed to increase the MTBO of the

gas turbines beyond the [location] expected average. This experience has been used as an example by the gas turbine manufacturer of how proper operation and maintenance techniques can be successful to extend MTBO, Mikhaeil explained. Additionally, Dresser-Rand emphasized training and employment of Venezuelan nationals. During the five years of the contract we achieved 90 percent local employment, he said. Meanwhile, off the coast of North America, a major oil company was experiencing low availability for their turbo compression trains during the first year of operation. Dresser-Rand signed a five-year comprehensive maintenance contract that commenced early in 2000

and called for an availability target of 92 percent for the first year, with the target increasing in successive years of the contract. By the end of 2000, the actual availability for the year averaged 95 percent. As Betche led the contract negotiations, Rojas spearheaded the first year on-site implementation efforts. Our success was due to teamwork, integrating our efforts with the clients team and utilizing all of Dresser-Rands expertise and worldwide tentacles of resources. We employed the collective knowledge of our gas turbine and compressor operations in Norway, France, Houston, Texas, and Olean, New York, Rojas stated, confirming the reasons for the success of the contract.

In Nigeria there are three major contracts underway: NGC for Shell Nigerias five reciprocating compressor stations for refurbishment, upgrade and long-term maintenance; the Obigbo project for Shell Nigeria with three turbo compressor gas plants and four flowstations for a 10-year full operations and maintenance contract of everything inside the fence; and Shells W00932 with seven compressor stations whereby Dresser-Rand has complete responsibility for overhauls and maintenance. "Throughout our region, there has been a downward trend in the number of qualified specialists on the subject of sophisticated rotating equipment," reports Steve Jackson, director of Availability PLUS and Condition Monitoring

Applications for DresserRands European Served Areas (ESA) region. As a result, more and more users of our type of machinery are looking for our support in keeping their equipment available to fulfill the duty for which it was installed. Condition monitoring, whether local or remote, coupled with Availability PLUS, enables end users of rotating equipment to tap into Dresser-Rands large reservoir of experienced people, while effectively sharing the cost of the employment of the technicians with other equipment users. There is no doubt in my mind that the number of units the Availability PLUS group is currently managing is just scratching the surface of the industry's future need in this area, adds Jackson. Not all Availability PLUS contracts are as large as those previously mentioned. Alberto Schirmer, senior maintenance and reliability engineer for Availability PLUS, recalls his first project with a major petrochemical plant in Texas. The plant, which produces chemicals and plastics including ethylene and polyethylene, was having problems with its five air compressors. The air compressors were crucial. They couldnt operate the petrochemical plant without them, Schirmer said. They were overhauling these machines every six months, he recalled. Dresser-Rand signed on in February 1997

to improve reliability. We established a five-year goal and developed a maintenance approach that involved both the client and DresserRand. Now, were overhauling equipment every five years instead of every six months. The Availability PLUS approach means identifying what is causing the problem, rather than solely performing an overhaul or providing parts replacement, Schirmer says. Root cause analysis makes the problem go away forever. It was the resolution of habitual problems which has been a key to the success of this contract. The risk element for us is the scenario where we fail to eliminate the cause of the problem, Schirmer continued. The client does not bear the burden alone were sharing the risk with the client. and we are paid based on achieving a certain level of performance, Betche added. In total, there are nearly 20 Availability PLUS projects currently under contract worldwide. Dresser-Rand figures Availability PLUS is a growth area. Dresser-Rand has a lot of initiatives on the table, Rojas said. Wed like every contract to be pay for performance. We may have been ahead of ourselves five years ago, Betche said, but our clients are gaining more confidence in the pay for performance concept and how we apply that concept to our program. He figures that as projects end and contracts are renewed, clients will be demanding even higher performance. A typical performance based contract recognizes that the bar will be raised.
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Dresser-Rands Availability PLUS program has been successful for more than five years for clients such as Petroleos de Venezuela S.A. (PDVSA).

DATUM Milestone Confirms Success

In less than five years, Dresser-Rand has designed, manufactured and installed more than 100 DATUM centrifugal compressors worldwide. The 100 units represent a total of more than 1,200,000 hours of operating time, and more than 1,000,000 installed horsepower. Since its debut at the 1995 Turbomachinery Symposium, the DATUM has established new benchmarks for performance and ease of maintenance. With an advanced modular design, a DATUM compressor module can be preassembled outside of the casing and installed as a complete assembly, greatly reducing service time. It was a clean-sheet design based on extensive discussions with our clients and vendors, as well as a thorough internal review, says David Vincent, director of Strategic Businesses/ Projects Development Americas Region, who was instrumental in introducing and promoting the product while he was director, turbo business development in Olean, New York. We anticipated that there might be some reluctance on the part of our clients to invest in something different or new. But we werent surprised, either, when sales took off. Before the DATUM compressors second anniversary, more than 75 had been ordered by 19 companies for applications on every continent. These orders represented such diverse applications as refrigeration and syngas in ammonia production; charged gas and propylene refrigeration for ethylene production; syngas for methanol; wet gas service in refining; gas lift and reinjection for oil production; and gas storage in natural gas production. Altogether, more than 190 units have been ordered in both axial and radial split configurations, with flow ranges of approximately 9,800 CFM to 193,000 CFM. The compressors are manufactured at Dresser-Rand facilities in the U.S. and France. Those who have installed DATUM units are using them in some of the most demanding applications for leading companies in their industries, including gas reinjection on North Sea platforms for Statoil, gas lift (oil recovery) on Alaskas North Slope for BP (formerly ARCO) and refinery wet gas and coker gas for Marathon Ashland Petroleum in the U.S. heartland. One of the first companies to recognize the value of DATUM technology was Conoco, which has ordered eight units for various installations. In a letter to Dresser-Rand, Conocos Roger Allen, consultant, senior rotating equipment engineer, detailed some advantages of the DATUM compressors. The flexibility of features that Dresser-Rand can provide on the units gives you the capability to fit about any situation with very few limitations or serious compromises. As the oil and gas industry gets leaner and economics grow tighter, the need for more compression from one casing, which reduces investment costs by 10 to 20 percent on those projects with high compression ratios, will become even more important in the future. As more DATUM units are

sold, Dresser-Rand continues to work diligently to reduce cycle times for engineering and manufacturing. With Dresser-Rands new Product Configurator and advanced manufacturing solutions, a complete DATUM centrifugal compressor can now be built and ready for shipment in approximately six months.

Dresser-Rand can cut the typical industry cycle time (12-14 months) from quotation to delivery in half. While the success of the DATUM has been tremen-

dous and the number of installed units continues to rise, new advances in product engineering promise even greater success for DresserRand. Were not resting on our laurels, says Harry Miller,

product manager at Dresser-Rand. In the coming year we expect even more product enhancements and improvements, such as a new multistage pipeline booster that utilizes DATUM technology, that will further solidify DATUMs place in the market.

Statoil Extends Frame Contract Alliance With Dresser-Rand

When Statoil and DresserRand signed their first frame contract alliance, officials of both companies hailed it as a win-win opportunity. But as the agreement ends its fifth year, the two industry leaders are even more bullish. The frame contract has surpassed all expectations, with the alliance between the two companies being even stronger, and generating more contracts and projects than originally anticipated. The concept now with a proven track record has been so successful that Statoil and Dresser-Rand have added a three-year extension. In 1996, Statoil Norways state-owned oil and natural gas exploration and production company awarded Dresser-Rand a frame contract worth approximately $250 million for turbomachinery to be installed at new oil recovery platforms in the North Sea. (In June 2001 part of Statoil became listed on the Norwegian and New York stock exchanges). It was a moment of calculated risk for both companies. At the time of the signing, Dresser-Rand had just introduced its DATUM line of centrifugal compressors with only a dozen units booked and no units operating in the field. The Statoil frame contract, which called for as many as 12 DATUM units, represented a significant vote of confidence for the new technology. The DATUM was also a key factor in Statoil selecting Dresser-Rand, said Hans Rodberg, vice president and general manager for Dresser-Rand Norway. With efficiencies estimated at two to five percent greater than existing equipment, the DATUM line reduces fuel costs and produces less harmful emissions. This is crucial for Statoil as the company wants to remain a leader in compliance with some of the most stringent emissions standards in the world. In addition to electric motor

and gas turbine driven compressor units, the agreement included the purchase of technical assistance and spare parts with service and maintenance as an option. While Dresser-Rand has been a major supplier to Statoil since 1987, the frame contract represented the largest commitment of this kind to the company.

With 2001 marking the end of the original five-year frame agreement, Statoil reevaluated its requirements for the next three years and extended the frame contract with Dresser-Rand. Similar to the original frame contract agreement, the range of products and services to be provided for the three-year extension includes complete gas turbine driven compressor trains, the packaging of electric motor driven compressors and gas turbine driven generator sets. The contract also includes the purchase of technical

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assistance and spare parts with service and maintenance as an option. Competitive pricing, life cycle cost, and high compressor efficiency were all factors that led to the selection of Dresser-Rand as the supplier for the equipment frame contract, said Kjell Oeyvind Tendenes, vice president, project support for Statoil. Additionally,

Dresser-Rand has completely performed to our satisfaction with timely delivery, HSE (Health Safety and Environment) and their willingness to solve problems quickly. The equipment will be used for export and re-injection of gas as well as production of energy at various Statoil installations, which include Statoils Kvitebjrn and Sleipner platforms in the North Sea. For the Kvitebjrn platform, Dresser-Rands facility in Kongsberg, Norway, will assemble and test two DR60G generator packages. The companys LeHavre, France, facility will provide the platform with two DATUM centrifugal compressor packages, as well as its field-proven dry gas seals. Delivery of the compressors is scheduled for December 2001. The

generator sets are expected to be delivered in February 2002, with the platform to go on-line in August 2004. ABB Offshore Systems is the Engineer Procurement Contractor for the platform deck. Upon completion, the Kvitebjrn platform will be a fully integrated fixed steel production, drilling and living quarters platform. Recoverable reserves at the field, which is located southeast of Gullfaks, is estimated at 17 million Sm3 (standard cubic meter) condensate (light oil) and 52 billion cubic meters of gas. The gas and condensate from the field will be piped to the Kollsnes gas treatment plant and Mongstad terminal.

To ensure a successful three-year period, it will be crucial for Dresser-Rand to maintain the same standard and quality of equipment, Rodberg said. It will also be necessary for us to further improve our lead time on spare parts, as well as communication and response time on warranties. As part of the contract, Dresser-Rand may also be required to design a LM6000 mechanical drive program. In addition to having the benefit of being familiar with the quality of equipment and service, there are several other long-term advantages to the contract, according to Statoil. As part of the contract we are able to avoid expensive bidding processes for each new project, said Tendenes. Other benefits include reduced project cycle times, eliminating international tender procedures, and direct electronic access to specific Dresser-Rand engineering systems and tools. Dresser-Rand also benefits significantly with the threeyear extension, Rodberg added. This includes continuing our alliance with Norways largest oil and gas production company. Statoil continues to be one of the worlds leading oil and gas exporters, and DresserRand is committed to providing its technical expertise in turbomachinery and power generation for years to come.

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Magnum Valves Running Strong For Tosco

Dresser-Rand engineers knew the innovative design of the Magnum valve would set new benchmarks for reliability, longevity, and affordability on all models of reciprocating compressors. And, for Tosco Corporation, the Magnum valve has done just that performing continuously for nearly two years. Tosco Corporations Woodriver, Illinois, oil refinery was experiencing frequent compressor valve failures on two of its reciprocating process compressors. The failures were identified as broken sealing elements and springs that were failing primarily because of a process gas commonly contaminated with liquids and debris. Tosco, with corporate headquarters in Old Greenwich, Connecticut, is the largest independent refiner and marketer of petroleum products in the United States. The company is also the nation's largest operator of companycontrolled convenience stores. As a critical component to refinery operation, the compressors are responsible for compressing hydrogen in three stages as a feed gas to various refinery processes and a single stage on vent gas service. With no spare compressor available, unscheduled downtime is costly and highly visible in a
Tosco Corporation's Woodriver, Illinois, oil refinery.
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marketplace where supply is tight. Improving compressor reliability, as well as making minor modifications to the compressor cylinders which would allow an increase in capacity, was crucial to Tosco, said Mike Sikora, rotating equipment engineer for the company. Engineers from DresserRands revamp and valve engineering teams conducted an engineering performance review of the units. Based on the results, Dresser-Rand determined the existing compressors and electric motor drivers were capable of satisfying the desired increased capacity requirements. The Magnum valve was perfect for this application. With a precision-guided valve element and springs, the Magnum valve increases the reliability of moving parts for

long-term operation and can be configured for a wide range of operating conditions and virtually any gas process from gases ranging in molecular weight from 2 to 71, speeds from 327 to 1,000 RPM, and pressures ranging from 35 to 4,000 psig. The Magnum valve also employs a unique grid pattern that balances seat and guard areas with the lift area. Dresser-Rand completed the upgrade, which included the removal of existing inlet valve cap pockets, and the modification of valve covers to accommodate the new valve design. Since installation, DresserRands Magnum valves have been running continuously for nearly two years at the Woodriver refinery. Prior to the installation of the Magnum valves, the compressors ran an average of 11 months between valve failures.

In addition to the valves being more reliable, the compressors are noticeably quieter and the discharge temperatures are down an average of 5-10 degrees, added Sikora. Needless to say, we [Tosco] are very satisfied with the increased run time, as well as Dresser-Rands responsiveness. As a result of the upgrade, Tosco has recently contracted Dresser-Rand to apply Magnum valves and Oring valve cover upgrades to a non- Dresser-Rand reciprocating compressor. After being installed in more than 100 cylinders around the world in both lubricated and non-lubricated service, the Magnum valve continues to demonstrate that it is clearly an innovative engineering design that is a step ahead of the rest.

How could we make the best valves even better? Think fast.
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Concept Engineering

Gas & Steam Turbines

Painted Post, N.Y.: Tel: (607) 937-2011 Fax: (607) 937-2170 Le Havre, France: Tel: + 33-2-35-25-52-25 Fax: + 33-2-35-25-53-66 Kuala Lumpur, Malaysia: Tel: + 60-3-253-6633 Fax: + 60-3-253-2622 E-mail: ad@dresser-rand.com
2001 Dresser-Rand Company

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 more accurate control of geometry during manufacture reducing secondary losses (interstage seals) reducing degradation caused by fouling reducing mechanical losses bearings and seals smaller and simpler auxiliary systems. Most of these advanced compressor technologies can be applied to existing installations by revamping and upgrading compressors for new process requirements and/or improved reliability and efficiency.

hence minimize power consumption. Figure 3 shows the progression of stage efficiency in centrifugal compressors over a 50-year period. It should be noted that the values shown refer to the most efficient stages in a machine. Today, Dresser-Rand is shipping certain compressor designs which have favorable pressure recovery systems (e.g. single stage, axial inlet pipeline machines) with stage efficiencies of the order of 90%. Figure 4 shows the hypothetical benefit obtainable by revamping the compressors in a 1970 vintage large ethylene plant. With no change to the design capacity of two billion pounds/year, simply replacing the existing rotors and stationary components with modern equivalents produces significant improvements in train efficiencies and overall annual energy savings of approximately $2,500,000. In this scenario a payback period of less than three years is feasible.

Reliability And Efficiency Optimization Of Centrifugal Compressor Trains By The Application Of Advanced Revamp Techniques And System Upgrades
Authors: Julian Smith Mr. Smith is a 30-year veteran with Dresser-Rand and its predecessor company, Dresser-Clark. He currently serves as Director of Business Development in Olean, NY. Markus Mller Mr. Mller began his career with MTU in Munich before joining Dresser France in 1983 in the Design Department. He currently serves as the Manager of Turbo Technical Services dealing primarily with revamp applications on turbo machinery; he is based in Le Havre, France.

quences, which can quickly amount to many thousands of dollars worth of product. Downtime of any duration has a dramatic impact on the profitability of any refinery or petrochemical operation. The cost of production losses suffered from equipment downtime will far outweigh any investments in enhanced reliability or efficiency, which would have prevented the loss of plant output.

Flowpath Design
In recent years, advances in computer processing power have been paralleled by the development of sophisticated Computation Fluid Dynamics (CFD) codes, which today enable the compressor designer to create a three dimensional model of the entire flowpath of a centrifugal machine. The primary area of focus is the impellers along with their corresponding inlet guide vanes, discharge channels and return bends. The inlet and discharge volutes are modeled. In addition, the internal labyrinth seals are scrutinized with a view to minimizing internal recycle flows. Figure 1 shows (in two dimensions) a typical CFD Grid Mesh for a single compressor stage, while Figure 2 shows the results of a relative Mach number analysis for the same stage. Using these results, the compressor designer is able to optimize flow path geometries and

Compressors
Dresser-Rand has built more than 10,000 centrifugal process compressors for various refinery, natural gas and petrochemical applications around the world. In recent years, many of these have been of the new DATUM design. In addition, Dresser-Rand has participated in many revamp projects, often on older Dresser-Rand units which have already seen several years of service. By applying current, state-of-theart aerodynamic and mechanical designs to satisfy revised compressor operating conditions, significant efficiency and reliability improvements can be obtained. Typically, savings are generated by: improvements in aerodynamic flowpath design

Progress in Manufacturing Processes: Art to Part

Dresser-Rand has developed a unique compressor production process which is used today for production of both new compressors and revamp components. Building on the results of CFD (and other) analyses, and incorporating significant client input, an entire new family of centrifugal compressors (the DATUM) was designed. This process, which began in 1992, utilizes an advanced software tool (Unigraphics) to create a

INTRODUCTION
Critical to refineries and petrochemical plants is the reliability and efficiency of rotating machinery such as centrifugal compressors, steam turbines and pumps. The loss of only a few hours of production or a few points in equipment efficiency can lead to severe financial conse-

Figure 1. CFD Grid Meshing

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Figure 2 CFD - Mach No. Analysis

Figure 3.

solid model of each component in the compressor. By scaling from a set of Master Seed Parts, smaller or larger frame sizes (and gas flows) are accommodated. The individual parts are then assembled by the software into a complete machine. Additionally, during the design phase, each component is simultaneously analyzed by fabrication and machining specialists for manufacturability, together with automatic generation of the necessary NC machine tool codes. Integration of the design and manufacturing tools has led to several advantages. Computer controlled, multiple-axis milling enables the use of optimized component geometry, provides superior dimensional control and reduces or eliminates the need for castings. The evolution from castings to fabricated components produces smoother surfaces with reduced friction losses and a better fit-up of components. In addition, the machining of every part of the gas flowpath means more precise dimensional control and the elimination of potential casting inconsistencies. Figure 5 shows an axially split half bundle; note the smooth finish on all gas passages. When revamping and rerating an existing installation there can sometimes be concerns over the fit-up of new compressor internals in an existing casing. By using Unigraphics, the new revamp components are visualized within the existing compressor body, thus ensuring assembly integrity of the new revamp components.

to improved rotor stability and reduced mechanical losses.

Journal Bearings
Various bearing upgrades are available, ranging from simple tilt pad designs in both cylindrical and spherical seat options to complete replacement damper bearings, as required by rotor dynamics studies.

Thrust Bearings
Low friction Leading Edge Groove (LEG) thrust bearings reduce friction losses and babbitt operating temperatures, providing a load carrying capacity increase of 15-20%. Oil flow rates can be reduced by as much as 60%, with an accompanying reduction in friction losses of 45%.
Figure 4.

Dry Gas Seals

After several years of research and development, DresserRand shipped its first dry gas seal in 1995. Since that time, 252 seals have been shipped, many for arduous offshore North Sea applications. Dry seals eliminate the need for complex and costly seal oil systems, and the ongoing maintenance associated with them. Parasitic losses are also reduced, leading to reduced power consumption. During operation, the aerodynamic effect of the seal face grooves within the dry gas seal creates a very thin gap between the rotating and the stationary rings. Special anti-hang-up hardware is included to ensure trouble-free starting. Repair and test facilities have been installed in both Europe and the U.S, and before shipment, each seal receives a full running test at design pressure to accommodate revamps. Dry gas seal upgrades can be commercially very attractive when combined with a revamp project.

Figure 5.

Windback Seal Ring

- Simple installation - Can be combined with seal assembly upgrade - Up to 60% less sour oil

O-Rings
Typical Z-Ring oil film seal design

HVOF Coating
The new seal design with HVOF thermal spray

Advances in NonAerodynamic Components

While gains in efficiency can largely be attributed to advances in aerodynamic design and manufacturing processes, other components have also contributed to the efficiency and reliability of rotating equipment.

Polymer Labyrinths
In recent years, engineered polymers have been developed which can be suitable replacements for conventional metallic labyrinths. Typical materials are Fluorosint, Torlon and PEEK. Polymer labyrinths
Continued on page 16

Bearings
Significantly improved bearing technologies have contributed

Windback Seal-Ring
Figure 6.
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Reliability And Efficiency....

Continued from page 15

allow closer operating tolerances, reduced internal recycle flows, and hence improved overall efficiency. The materials inherent flexibility means they are touch-off resistant, non-galling to the compressor shaft, and their material memory means they return to their original shape. Polymer labyrinths have demonstrated enhanced corrosion, wear and creep resistance when compared with conventional metal labyrinths. They are applied within the compressor for shaft seal labyrinths, impeller eye labyrinths, balance piston labyrinths and interstage labyrinths.

widespread in smaller capacity, higher pressure applications. On a recent retrofit application for a small unit for a North Sea platform, the performance was enhanced by approximately 10% by the installation of abradable seals. This relatively minor upgrade provided the desired improvement at low cost by the change of a balance piston and labyrinth only.

Windback Inner Seals

Replacement of the inner ring in a conventional oil seal with a Windback ring (Figure 6) can provide a low-cost solution to reduce sour oil flows from the inner seals in cases where the retrofit of a dry gas seal is not desired. An extensive test program allowed Dresser-Rand engineers to optimize the design of the seals which have subsequently been validated by field testing. A reduction of up to 60% of conventional sour seal oil flows can be obtained and the upgraded seals can be incorporated with no further rework during a normal seal overhaul.

stationary and dynamic components within the compressor or steam turbine. Three coating layers are applied, with a PTFE top coat. This process offers excellent coating adhesion (ASTM D2247), thermal shock and solvent resistance. These coatings have shown their effectiveness in reducing the fouling in gas or steam passages (impellers, blades and stationary components). In compressor applications, coatings have proven effective on charge gas compressors for ethylene plants and refinery recycle duty. Dresser-Rands coatings are designed to resist the typical surface temperatures encountered during rotor assembly. By pre-coating the individual components, there is no danger of the coating material fouling the critical thermal gaps between shaft spacers, sleeves and impellers. Figure 7 shows coated impellers being individually balanced.

higher throughputs, but also enhanced efficiency and provided a wider operating range. Figures 12 & 13: Ethylene plant in Brazil In this example, the client desired a change in feed to the cracker from liquid to gas, along with other upgrades to the process (Figure 12). Dresser-Rands analysis indicated that (even with new revamp internals) the first stage cracked gas compressor body and the propylene refrigeration compressor body would be unable to handle the resultant increase in flow, and these were replaced with new (and larger) drop-in machines. On the remaining units, creative engineering techniques were employed to accommodate the new revamp hardware within the confines of the existing casings (Figure 13). Figures 14 & 15: Pipeline compressor in Norway This example demonstrates a revamp project which was driven solely by energy savings. In fact, the revamp of only one compressor allowed it to handle the capacity of two units running in parallel at part load conditions. Particularly noteworthy in this example is the reconfiguration of the compressor from its original back-to-back layout into a straight-through arrangement of the impellers. Figure 16: Pipeline compressor in Argentina Applied Technology The compressor in this example was originally built by a Russian OEM. The client operates a number of Dresser-Rand compressors in his system, and wished to rerate the subject unit with comparable operating range and efficiency. Revamp internals (rotor and stationary)

Abradable Seals
These are also being specified to minimize interstage and balance piston leakage, thus helping to optimize efficiency. These are becoming more

Revamp Case Studies

The following summaries offer some examples of compressor revamps where these new technologies have been applied. Figures 8 & 9: Recycle section of an ammonia synthesis gas compressor This example shows how a relatively simple change to the single stage recycle section has allowed reoptimization of the compressor performance following the widespread change to a high efficiency ammonia converter. Figures 10 & 11: Export compressor in Norway This revamp involved five large export compressors, each driven by a 40 MW variable speed motor. These units were operating close to their maximum capacity and the revamp not only provided

Engineered Equipment Coatings

Coatings are being used more frequently to increase the time between overhauls of rotating equipment in certain applications. These anti-foulant coatings can be applied to

Figure 7.

Figure 8.

Before

After

Figure 9. Syn gas cycle stage revamp with high efficiency DATUM impeller
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Figure 10. Export compressor before revamp

were designed and installed and at the same time the bearings and seals were replaced to ensure acceptable rotor dynamics together with commonality of spare parts.

Steam Turbines
Steam turbines, too, have seen similar improvements. Figure 17 shows the improvement in turbine overall efficiency over the last 40 years. Again, it has been improvements in technology that have led the way for an efficiency increase of more than 10 percentage points, combined with improvements in reliability. Contributory factors include more efficient blading; profiled ring and vane nozzles and diaphragms; HVOF coatings; stepped interstage labyrinths; retractable interstage seals; direct lube bearings; and electronic governor upgrades.

the performance benefits of sophisticated endwall profiling with the relatively low cost of a ring and vane flow path configuration. The use of advanced, state-of-the-art manufacturing methods allows customization of each PRV diaphragm for specific applications with improved value compared to traditional construction methods. The heart of the PRV diaphragm is a set of specially profiled endwall rings pierced with vane shaped holes through which mating precision rolled nozzle vane segments are inserted. The vane holes are machined using an abrasive Waterjet process to assure consistent and accurate vane positioning in a wide range of endwall thickness. This fully stainless steel flow path sub-assembly is then electron beam welded to a retaining ring and disk, creating the complete diaphragm assembly. For every application, unique flow path endwall profiles are developed to achieve maximum stage-to-stage energy recovery and minimize losses at the nozzle / bucket interface. In addition, nozzle vane shapes have been carefully designed to optimize aerodynamic performance and structural capabilities. PRV nozzle rings and diaphragms offer the end user important benefits. For example, when PRV hardware is used to upgrade flow or power levels in existing turbines, stage efficiencies are enhanced at the same time. This is because PRV diaphragms are a high performance design better than older diaphragm styles. Efficiency improvements of 35% versus older type diaphragms have been measured; in certain cases when PRV diaphragms were installed during revamp and cleaning of heavily fouled turbines, overall gains have

Figure 12.

Before

After
Figure 13. Cracked Gas 2nd Body 4MW7-5

Blading
As with compressors, an engineering revamp study is warranted if it is suspected that the current flowpath design is mismatched to the required conditions of service. Revamp of the rotor with modern, stateof-the-art blading, together with corresponding changes to the nozzles and diaphragms can frequently be justified via relatively short payback periods. Where steam cleanliness is a problem, as previously noted, such a revamp can often incorporate the application of engineered coatings to extend the time between overhauls.

Figure 14. Pipeline compressor revamp in Norway

Before

Profiled Ring and Vane Nozzle Rings

Dresser-Rand has recently developed a new nozzle ring and diaphragm construction with significant performance benefits over previous construction styles. The new design, termed Profiled Ring and Vane or PRV, combines

After
Figure 15. Pipeline compressor

been considerably greater than this. This performance improvement is available at competitive prices and with shorter delivery cycles making a turbine rerate even more attractive.

CoMoCrSi thermal spray coating for stainless steel valve stems overlay coating to extend service life of governor valves (by 200-300%) use of stellite as required.

Valves
Various methods may be employed to minimize corrosion and increase wear resistance: High Velocity Oxy-Fuel (HVOF) spray coating
Figure 11. Export compressor after revamp; DATUM internals in sections 1 and 2; higher capacity and higher efficiency

Stepped Interstage Labyrinths

Stepped labyrinths are located on the steam supply end of the shaft and create a more restrictive flow path than constant height labyrinths.
Continued on page 18 17

Reliability And
Continued from page 17

Their effect is a reduction in leakage from the turbine, thereby improving overall machine efficiency and/or producing superior rotor dynamics by reducing the shaft length.

below that level. When the differential pressure falls below the predetermined level, on either rising pressure during start-up or falling pressure during shutdown, the spring tension opens the seal and pushes it away from the shaft. During upsets, particularly during a start-up rub caused by a temporary shaft bow, damage to the labyrinth seals on larger rotors could open the running clearances to more than .050" on radius at the worst impact stage. If this damage occurs on initial start-up or after a scheduled inspection, this would mean the unit could operate at decreased efficiency until the next scheduled outage, probably three or more years later. The differential cost of the Dresser-Rand retractable seals over traditional floating seals would be covered in less than one year of operation. One especially attractive feature of the Dresser-Rand retractable seal that differentiates its design from other seals, is the integral spring assembly. With the DresserRand seal, the spring is secured in the labyrinth segment eliminating the annoying maintenance problem of springs being dropped or lost in the turbine case during assembly.

Retractable Interstage Seals

Dresser-Rand has developed a retractable labyrinth seal (Figure 18) for interstage shaft sealing on large steam turbines. Traditional labyrinth seals are designed to float in close proximity (~0.010" to 0.015" clearance) to the rotating shaft. The typical seal is spring backed, allowing it to give when the turbine rotor experiences an upset, such as during a bow on start-up or when going through a critical speed or other upsets. The problem is that many times, the teeth on the labyrinth seals are damaged during these upsets. This results in excessive running clearances and decreased power output due to the steam leaking through the opened-up seal area versus going through the proper steam path. Dresser-Rand's retractable seal design incorporates an integral spring assembly that separates the seal segments and opens the seal clearance area when the unit is in a start-up or shutdown mode. The spring tension is selected to allow the seals to remain open during start-up and to close on the shaft when the differential pressure across the seal reaches a predetermined level. Just as the seals close when the differential pressure reaches the preset level, they open when the pressure falls

steam turbines are designed to handle a broad operating range. Often, these capabilities are not taken advantage of by the existing control and valve actuation system. This can cost money in lost performance ability. An electronic control system is better suited to take advantage of a machines inherent capabilities and maximize performance. Electronic control systems can offer a variety of features which help to improve performance. These features include automatic hand valve actuation, improved extraction control and process compatibility. Electronic control systems offer specific advantages over mechanical / hydraulic systems. Greater responsiveness and accuracy of speed controls allow improved systems control. There are less mechanical parts in an electronic control system, which leads to greater reliability and reduced maintenance costs. Electronic controls are extremely adaptable and flexible. They are designed to meet the needs of today as well as tomorrow. These control systems are capable of being reprogrammed so that as a

facility matures the control system can mature with it. Electronic controls are highly diverse and are able to communicate with other electronic systems within the plant, resulting in greater plant management than previously possible with a mechanical system.

Conclusion
As can be seen from the foregoing summaries, technology has contributed significantly to operating economy and efficiency improvements. These gains are primarily in the aerodynamic design of gas and steam flow paths. The latest technology in this field can be offered on older units as part of revamp projects. The non-aerodynamic advances, however, can also play a leading role in increasing efficiency and decreasing unplanned downtime and lengthening the terms between planned downtime. Product upgrades and coatings have resulted in mechanical advances and improved reliability. In all cases, however, the technology advancements have also resulted in reduced manufacturing cycle times through internal process improvements.

Direct Lubricated Bearings

As applied on compressors.

Electronic Governor
Steam turbine control systems are selected for optimum operation at a single operating condition for a specific plant. Steam turbines will operate off design numerous times, especially during start-up and shutdown. Dresser-Rand

Figure 17. Progression of steam turbine overall efficiency

Figure 16. Pipeline compressor in Argentina

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Figure 18.

country and in the same time zone, our improved response time supports the drive for client satisfaction, Ravi added. Training and skills development are a continuous process at Dresser-Rand India. The engineers have been trained in various Dresser-Rand facilities around the world in application engineering and services. The Naroda plant, however, serves more than just the Indian market. Dresser-Rand India has been nominated by the company as the worldwide supplier for light process reciprocating compressors. We are the worlds link in the supply chain for light process reciprocating compressors, as well as for high-speed compressor frames, Ravi said. For the Naroda plant, this means direct access to the companys Painted Post, New York, expertise and database for imaging and engineering information. In addition, our engineers attend seminars, and the Naroda Supply Chain Management and engineering teams are engaged with their counter-

parts in Painted Post on a regular basis, explained Ravi. This information is then shared with others at Dresser-Rand India. Ravi began his career with Dresser-Rand in 1987 when the company was formed through a joint venture between Ingersoll-Rand and the former Dresser Industries. Prior to that, Ravi worked for Ingersoll-Rand, starting with the company in 1964. He spent several years in Indonesia and then in Singapore as vice president of sales for the Asia-Pacific region and as managing director of Dresser-Rand Southeast Asia. According to Ravi, one of the greatest challenges he has faced has been getting the facility up to speed and connected with the rest of Dresser-Rand. The entire process, although slow, was accomplished smoothly. We have achieved a lot in a short time. The change process has only just begun and we recognize that we have a long way to go. The satisfaction of our clients is the true measure of our success.

Our clients welcomed Dresser-Rand into India and the employees of the company embraced with enthusiasm the opportunity to become part of the larger Dresser-Rand family, Ravi explained. The first task was to establish priorities for Dresser-Rand India, which would focus on integrating the company with Dresser-Rand and develop a credible operation. Establishing reliable connectivity, a mind change, and open communications were major accomplishments, Ravi said. Dresser-Rand has a large installed base of equipment in India and clients were serviced from overseas or by our Indian representatives. Now that we are in the

Ravi Sukhia

Improving responsiveness in an area of the world thats adding new grass root refining and gas transmission capacities is a challenge in itself. The challenge becomes even greater when a new manufacturing facility is being brought on-line. After nearly 40 years with Dresser-Rand, Ravi Sukhia has faced some of his own challenges as managing director of Dresser-Rands facilities in India. But with experience on his side, he was able to overcome these challenges. In April 2000, after manufacturing gas compressors in India for nearly 30 years as Ingersoll-Rand, Dresser-Rand opened its doors to DresserRand India Pvt. Ltd., which included a manufacturing facility at Naroda. The company is responsible for manufacturing and servicing process gas compressors throughout India.

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Dresser-Rand Offers Guide To DATUM Centrifugal Compressors

To better serve its clients, Dresser-Rand has published a comprehensive guide to its DATUM line of centrifugal compressors. The 10-page brochure describes how their unmatched efficiency, reliability, and ease of maintenance have made the DATUM compressors the most advanced turbocompressors available for the oil, gas and process industries. Since being introduced to the industry in 1995, nearly 200 DATUM compressors have been sold, bringing higher efficiency to applications

worldwide. The DATUM centrifugal compressors feature a modular design in both axial and radial split models. The line of compressors is scaled in 14 frame sizes, D2 through D28. They offer flow range from 5,400 to 520,000 ICFM, and pressures from 900 PSIG to 10,500 PSIG. A copy of DATUM Centrifugal Compressors may be obtained online at www.dresser-rand.com by using the Contact D-R form, or by emailing your request to info@dresser-rand.com.

Dresser-Rand Offers Guide To GLT Steam Turbine Engine

With a capability of 160 hp (119kW) and speeds up to 3,600 rpm, Dresser-Rands GLT steam turbine is used to drive pumps, blowers, compressors, generators and fans. Designed to save space, the GLT does not compromise in performance. To better serve its clients, Dresser-Rand is offering a guide to its innovative GLT steam turbine. The six-page

brochure highlights the advanced design of the GLT that can be installed easily, requires minimal space, and keeps overall production and maintenance costs low. The GLT is produced in Dresser-Rands Oberhausen, Germany, facility. With nearly 100 years of experience, Dresser-Rand is an innovator in advanced steam turbine technology under such brand names as Turbodyne, Terry, Worthington, Moore and Kuhnert.

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A copy of GLT Steam Turbine may be obtained online at www.dresser-rand.com by using the Contact D-R form, or by emailing your request to info@dresser-rand.com.

Atlantic and Northeast regions of the United States. Dresser-Rands Painted Post, New York, facility will manufacture the equipment and the companys Houston Service Center will be responsible for the turbocharger upgrades. The packages are scheduled for delivery in summer 2001. Four units each will be converted at Dominion Transmissions Leidy Station in Renovo, PA, and Sabinsville Station in Sabinsville, PA. The companys Ellisburg Station in Genesee, PA, will convert six units.

Europe and China. The main objective of the agreement is for DresserRand to utilize BDI as its single-source supplier of standard bearings, said Tom Bartholomew, vice president of worldwide supply chain management, for DresserRand. By doing so, both Dresser-Rand and BDI will participate in cost-improvement initiatives, which will ultimately benefit our clients. Bartholomew explained that Dresser-Rand and BDI will reach their intended goals by a joint commitment to rationalize and standardize the products being provided, leveraging purchases, integrating processes and by fully utilizing BDIs capabilities. BDI is excited to help further define Dresser-Rands position not only as the leader, but also as the highest quality provider of energy conversion technology, said Steve Kieffer, vice president of BDI. Through standardization, automation, application engineering and joint commitment, we intend to lower the overall supply chain costs for Dresser-Rand.

Dresser-Rand To Supply Gas Transmission Equipment

Dominion Transmission has awarded Dresser-Rand contracts totaling nearly $1.8 million to supply gas engine emission equipment for Dresser-Rands 14 engines at three of the companys natural gas transmission and storage stations in Pennsylvania. Dresser-Rand will provide Dominion with 14 leanburn conversion packages equipped with Dresser-Rands patented SIP (Screw-InPrecombustion Chamber). The equipment will be used to lower reciprocating gas engine exhaust emissions. Dresser-Rand will also be responsible for turbocharger high-performance upgrades at one of the stations. Dominion Transmission, headquartered in Clarksburg, West Virginia, is the interstate gas transmission subsidiary of Dominion Inc. Primarily a provider of gas transportation and storage services, Dominion Transmission operates the worlds largest underground natural gas storage system. The company has links to other major pipelines and to markets in the Midwest, Mid-

Limited. The contract, for nearly $3 million in equipment, is for the Gujarat State Energy Generation Companys gas booster application located in the Hazira Gas Fields near Surat, India. Dresser-Rand will supply two separable compression systems, which include 5D VIP4 fuel gas booster compressors for gas turbine generator sets driven by Waukesha gas engines. This is the first VIP compressor and the largest engine-driven system order received by Dresser-Rands Naroda, India facility. This contract is significant to Dresser-Rand India because of future growth plans of the client for gas transmission in the Indian State of Gujarat, said Yayati Garde, project development manager for Dresser-Rand India. Delivery and installation are scheduled for the summer 2001, with start-up before October. Dresser-Rands facility in Painted Post, New York, will supply the 5D VIP4 compressors and the companys Naroda, India facility will package the units. Dresser-Rand India Pvt. Ltd. is responsible for manufacturing and servicing process gas compressors for the region. Dresser-Rand has been manufacturing gas compressors in India for nearly 30 years, and more than 1,500 compressors have been installed worldwide.
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Dresser-Rand and BDI, Inc. Form Three-Year Alliance

Dresser-Rand and BDI, Inc. (formerly Industrial Bearing Corporation), have entered into a three-year alliance agreement for the supply of standard rolling elements, mounted and plane sleeve bearings and other bearingrelated accessories and services. The agreement extends to Dresser-Rands New York State facilities in Olean, Painted Post and Wellsville. BDI, with headquarters in Cleveland, is a leading multi-national distributor of bearings, power transmission components, fluid power and related products. The company operates 57 branches in the USA and 42 branches outside the country including Canada, Mexico,

Dresser-Rand To Supply Compression Systems For Gas Transmission In India

Dresser-Rand has been selected to supply separable compression systems for Gujarat State Petronet

insights
Editorial Statement: insights is a periodical publication of the Dresser-Rand Company. Its editorial mission is to inform our readership in the areas of energy industries, as well as business, and world affairs that have an impact upon our mutual concerns. Comments, inquiries and suggestions should be directed to: Janet Ofano Communications Coordinator DRESSER-RAND insights Editorial Office P.O. Box 560 Olean, New York 14760 USA Phone: (716) 375-3000 FAX: (716) 375-3178

Paul Clark Drive, P.O. Box 560 Olean, New York 14760 USA Phone: (716) 375-3000 FAX: (716) 375-3178 www.dresser-rand.com

Copyright 2001 Dresser-Rand Company