MRC Global, Shell sign five-year agreement
For the last 15 years, MRC Global and Shell have worked together throughout the world. In May, the companies continued their longstanding relationship as Houston-based MRC signed a five-year global enterprise framework agreement for distribution of valves and automation services.
The EFA covers Shell’s upstream, midstream and downstream project and maintenance repair operations requirements in North America, Europe, Australia, Asia, the Middle East and Africa. It also covers carbon steel, stainless and alloy pipe, fittings and flanges in the U.S. and stainless steel and alloy pipe, fittings and flanges in Canada.
With the agreement, Shell expects MRC to be the single-source provider of valves and the central distributor of the other products to Shell’s business units in the specific areas.
“We are pleased that Shell continues to place its confidence in MRC to supply its operations with these important products,” MRC Chairman, President and CEO Andy Lane said.
“Based on activity projections, this five-year agreement represents the largest distribution contract that we have entered into with a global customer. By providing a ‘one-stop’ distribution platform for these products, we will assist Shell in driving standardization of its PVF materials requirements throughout its global organization.”
In other MRC Global news, the company recently announced it agreed to acquire the majority of operating assets of Chaparral Supply in Cherokee, Okla. Chaparral Supply is a wholly-owned subsidiary of SandRidge Energy and provides PVF products and oilfield supplies to its parent organization. MRC expects to merge Chaparral’s employees and specific inventories and assets with MRC’s existing Alva, Okla., service location. The closing of the deal was expected to be completed in June. As part of the transaction, the companies also will enter into a supply agreement whereby MRC will be the primary PVF and oilfield supply distributor to SandRidge’s operations in Oklahoma and Kansas.