Dresser-Rand signs $50M purchase order with PEMEX

Dresser-Rand Group Inc. announced December 18 that it has signed a blanket purchase order with Petroleos Mexicanos (PEMEX) valued at approximately $50 million. The order covers all aftermarket parts and services and came through Dresser-Rand's long established strategic alliance frame agreements with this national oil company.

As previously disclosed, the aftermarket bookings trends for two of Dresser-Rand’s national oil company clients had slowed during the early part of the year due to order process changes. Consistent with comments made by Dresser-Rand at the time of its third quarter 2007 earnings conference call, this order will help streamline transacting business with PEMEX.

"The blanket purchase order is a very positive step forward," said Vincent R. Volpe Jr., president and CEO of Dresser-Rand. "We expect that cycle times from inquiry to order will now be reduced and expect our aftermarket bookings run rates to return to traditional levels this quarter and stay strong going forward."

Petroleos Mexicanos (PEMEX) is Mexico's state-owned oil company. The integrated company's operations, spread throughout Mexico, range from exploration and production to refining and petrochemicals. PEMEX's P.M.I. Comercio Internacional subsidiary manages the company's trading operations outside the country. PEMEX has estimated proved reserves of 15.5 billion barrels of oil equivalent. In 2006 PEMEX produced about 3.3 million barrels of crude oil per day.

Dresser-Rand is among the largest suppliers of rotating equipment solutions to the worldwide oil, gas, petrochemical, and process industries. Dresser-Rand operates manufacturing facilities in the United States, France, Germany, Norway and India, and maintains a network of 27 service and support centers covering more than 140 countries.