CSOA
News on the Customer Service Order Acquisition – Latin America
Focus On Latin America
Author: Scott Vaughn, Director Americas Customer Service
This quarter's newsletter focuses on el familia de LACSOA led
by Carlos Segovia and his trusted lieutenants Jose Degennaro
and Francisco Longo. LACSOA is the acronymn for Latin
America Customer Service-Order Acquisition which we have
turned into our own new word pronounced "lack-so-ah" along
the same lines of how PDVSA is pronounced (pay-duh-vay-
sah). The LACSOA team primarily supports all original
equipment activity that comes from purchasing customers
located in Latin America regardless of what market it is
connected with or where in the world we elect to manufacture
the equipment. Secondarily, the LACSOA team supports other
Global CSOA organizations on projects that require equipment
built in one of our Latin American operations for export. Going
on 3 years now, Carlos and his team have made dramatic
Latin America, Land of Opportunity
Author: Carlos Segovia, Latin America Customer Service Order Acquisition All Markets Manager
Our fantastic growth rate in order acquisition, in all markets for
Original Equipment Completes within this 2007, gives us a
good confidence level to say that the Order Acquisition FPD
business model within the region is successfully implemented
with, of course, lots of opportunities to be sustained and
improved.
“Latin-Americans do have a lot of passion for what they do” is
what I hear from some colleagues abroad. Living every day,
the transformation process of such passion, into a focused,
realistic and profitable business opportunity for our operations
(local/other regions), is quite enjoyable.
For those who have Experimented and dealt such process,
will also realize that Latin America is a very wide geographical
area with many countries and different types of cultures with a
common language (except Brazil of course – however,
Portuñol is quite understandable to Spanish speakers).
At the same time, Flowserve Adds Value to this diversity and
certainly grows its market share, while bringing experience
from abroad.
Fourth Quarter 2007
Issue 5 , Volume 1
improvements in the entire order acquisition process.
In 2008 we will continue to optimize the LACSOA work process
to ensure we are sensitive to the needs of each unique region
within Latin America while taking advantage of all FPD's global
resources. This strategy will surely differentiate us from our
competitors. 2008 is also shaping up to be a real "breakout"
year for Latin America as Manuel Fernandez fully implements
the End User strategy throughout the region and Gustavo Diaz
prepares his sales strategies to dominate on all of the mega
captal projects planned for the year.
Just by reading this newsletter, I am sure you will sense the
passion, pride and professionalism that abound with LACSOA
and indeed throughout all of the Flowserve family in this region.
1
This 4th Qtr 2007, newsletter Shares some thoughts from Latin
America to Flowserve globally. Our People in LACSOA,
nowadays understands and live the experience of our diversity,
meets the Global Coordination that is indispensable to
compete, and have a great development potential with
opportunity in their career paths, not only for them, but also for
future generations.
Living, Experiencing and Sharing certainly means: Joy, Value,
and Participation. In our very Fast moving global context. Doing
things Better, and Safer with Passion.
WHAT’S INSIDE
Meet LA CSOA Team 2
Employee Focus 3
Tactical Tips 4
Major Projects 5-10
Market 11-13
Special Events 14-15
News 16
Team Building 17
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LA CSOA Team

Carlos Segovia

MEXICO – Santa Clara

BRAZIL – Rio de Janeiro

Santiago Rugerio

Francisco Longo

Javier Aguilar

Marcia Lima 2

Gabriela Lopez

Claudia Fernandes

Diego Badia

Vera Franco
VENEZUELA - Caracas ARGENTINA – Buenos Aires

Mariangelica Contreras José Degennaro Jorge Daponte Alan Mattos

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Employee Focus
Biography of Jorge Daponte

In the summer of 1973 I landed in Ingersoll-Dresser Other activities: Include client’s technical counseling
Pumps (former Worthington Argentina) and worked regarding projects in process or to be performed.
until 1993. The assignment was in engineering area,
then worked in marketing area and finally after gaining Most of my experience has been developed in our
valuable experience I became Senior Application company’s “processing area” that embraces most
Engineer in Sales area. remarkable clients: Y.P.F., Shell, Petrobras, Exxon Mob,
Currently and since 1995, I’ve been in Flowserve Astra, PAE, TGS, Occidental and others. Besides,
Argentina S.A. with same position, but I previously current domestic’s market behavior in a fast pace
worked as Sales Engineer up to year 2000. Since then changing economy’s country forces us to be constantly
I’ve been assigned as Senior Application Engineer in updated for a wide variety of equipment of all
Customer Service Group area, involved in sales as corporations that consult different world associated
domestic and foreign market support. I’ve been given companies to make better use of them to face growing
the chance to develop a wide range of activities from competence and making our clients notice our more solid
the beginning of business until the end of it. customer satisfaction to make them choose us for doing
business.
Firstly, I receive client’s quotations requests by different
means: visiting them or receiving list of conditions for
public, private or international bidding, etc. This
involves detailed analysis, knowledge of requirements
according users or international regulations such as
API, ANSI, DIN and others, period of time and ways to
apply since there are several businesses and different
needs that are held at the same time. My work 3
progressed to include marketing activities such as
estimating equipment costs (material, manual labor,
mark ups, competitor’s prices, etc). Other activities as
consulting foreign associated companies and domestic
and foreign suppliers (castings, diesel or electrical
motors, steam turbines, mechanical seals, couplings,
VFD, LOS, control panels among others)were
performed in order to obtain the most convenient
technical-commercial evaluation and best conditions as
to elaborate a profitable proposal with the final aim to
obtain business awarding.

After awarding, process continues by loading purchase

order to an internal company’s system that informs of it to
all areas involved (manufacturing, engineering, technical Jorge Daponte
services, etc.) and therefore includes technical Customer Service Order
purchasing area for acquiring all those items that aren’t
manufactured by Flowserve that completes final
Acquisition Senior Application
provisions (motors, turbines, seals, couplings, etc.). Engineer Argentina
Follow ups of all manufacturing process stages and
testings during this process are carried out until client’s
delivery.
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Tactical Tips Alejandro Fratini

Author: Alejandro Fratini, Tactical Product Manager, Twin Screw Pumps
Multiphase Pumps – A niche market
As the demands to increase sales become more
stringent for all pump companies, the Multiphase
Pumps provide an interesting resource to support a
market sector not serviced by most of our
competitors.
A niche market is a focused, targetable portion of a
market that is not being addressed by mainstream
providers.
While we continue to look for new and creative ways to increase
our market share when selling centrifugal pumps, there is a
product that may find its way through without involvement of any
of the main pump companies. This is the niche market of
Multiphase Pumps. Competitors in this sub-segment of the
market are much smaller than the top 5 pump suppliers to the
world. Having 31 factories, 150 service centers and many sales
offices across more than 50 countries provides Flowserve with a
competitive advantage against smaller companies that can be
very well utilized in a positive way.
A good success story related to this matter is the upstream
operation of SINCOR, a JV between PDVSA, Total and Statoil,
who ventured into the Multiphase Technology in 1999 because
they understood its benefits. MPP’s ensure a lower wellhead
pressure, which yields a better and faster recovery of the oil in
the wells without impacting the environment and at a much lower
cost when compared to wellhead separation, compression and
pumping. This technology allows oil companies to ship the
mixture of oil, water and gas (as well as some undesirable
biproducts) directly from the oil patch (or cluster) to a main
separation and treatment facility located in a more convenient
place. Due to scale economy, a bigger central processing facility
that handles the oil of several clusters is much more cost
effective than multiple smaller ones operating closer to each
patch.
Tactical Product Manager –
Twin Screw Pumps
Brantford, Ontario Canada
The package offered can range from a small standard pump,
motor and baseplate in much the same way as that of a
centrifugal pump, to a complex and expensive solution involving
a piping skid with suction, discharge, bypass, recirculation and
relief lines, a power house with a switchgear, VFD, PLC and Fire
and Gas system as well as the interconnection and integration of
all these elements. In sum, Flowserve can offer a turn key
solution that in combination with Flowserve’s aftermarket and
field service capabilities, customers will much appreciate.
Never more true than with Multiphase Pumps,
Flowserve is the solution provider of the industry. If
you are interested in exploring this market niche in
more detail, your local Customer Service Team will be
glad to assist you in this endeavor!
An essential element in selling Multiphase Pumps is that no matter
what the customer’s plans are, or what their system looks like, they
all rely on the pump supplier’s experience in matters of Multiphase
Pumping. Knowledge, professionalism and confidence are key to
any Multiphase Project. From our expertise in the SINCOR project,
Flowserve can offer many solutions to customers, along with
sound experience and technical support. So, next time you face a 4
customer, don’t fear to ask:
Have you considered a Multiphase Pump?

By having 2 operational service centers and more than 5000

pumps installed in Venezuela, Flowserve proved to the customer
the added value of being an established company. In doing so,
Flowserve secured an order for 19 Multiphase pumps in 1999. In
most countries in Latin America Flowserve has these same
capabilities, and they can be used in our advantage when
competing against smaller players that will have a hard time
demonstrating their local commitment. SINCOR has 26 pumps installed. The first pumps were commissioned
Multiphase Pump Systems are an interesting and complex solution in 2000 and have been running ever since. This installation alone has
to work with, and present a chance to understand the interaction yielded spare parts business in excess of 5 million dollars in addition to
between several components involved in the business of the service to install these parts in 7 years of operation. Also, many
producing oil. upgrades have taken place over the years in response to continually
changing conditions.
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Major Projects
ALCOA Project
Author: Marcia Lima, Water Resources, Power & General Industry Manager

Rio Plant starts delivering the first pump units to ALCOA

Back in late 2006 and early this year FPD Brazil was
awarded with three orders from ALCOA/ALUMAR in the total
amount of USD $ 6.95 MM. The orders involved 68
complete pump units with carbon steel casings and ss inner
parts and FSD seals for capacities from 35 to 2800 m3/h
(154 - 12,330 gpm), 12 to 170 m (39 - 558 ft) TDH and 15 to
1250 HP electric motors power. The acquisition of those
orders has just been possible because of professional and
hard teamwork of both Rio CSOA and Sales teams, which
held a close and sharply focused work with the customer's
Engineering people based on the utilization of similar sizes
and models and optimization of more than 40 existing FPD
units and inventory at the plant.

ALCOA is the world's leading alumina supplier–the only global supplier

with smelter and chemical grade aluminas available from multiple
sources around the world. ALUMAR - the Maranhão Aluminum
Consortium is one of the world’s largest aluminum and alumina
5
production complexes. Opened in 1984, it comprises the companies
ALCOA, Alcan, BHP Billiton and Abalco, performing a major role in the
industry base from the State of Maranhão in Brazil. ALCOA holds a
stake in the two main businesses of the undertaking: the Reduction
Plant and the Refinery. The Refinery produces alumina from bauxite. At
the Reduction Plant, alumina is electrolytically processed into primary
aluminum.

FPD's strategy was fully based on influencing ALUMAR's engineers to have similar sizes and models to the existing pumps
specified since the basic design phase and then to assure our products to be written up in the specifications at the bidding
phase. This work has been developed through almost two years and counted on the support, assistance and collaboration from
various groups, units and divisions of the Corporation around the world and, of course, the commitment and strong efforts of
the Brazilian teams.

ALUMAR's alumina expanded plant is scheduled to startup in the first Quarter of 2008 and the first units were delivered in June
2007 and the shipment of remaining ones will continue until January 2008, when the last units are scheduled to be delivered.
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Besides the job's booking value and the increasing of
FPD's installed base for this key customer, as well the
possibility of developing four new LNN pump sizes
locally in Brazil, FLOWSERVE is pound of serving a
Worldwide Company of Excellence and which is
highly concerned about social and environmental
affairs. Just to have an idea of the investments that
ALCOA makes in social projects, the Company has
invested US$ 33 million to install the Italuis system -
40 kilometers of water collection pipelines, which was
the single most substantial contribution ever made to
the town by one company. There also have been
huge investments in education for more than 1,200
students in the rural area and other social projects
such as the collection, processing and distributing of
breast milk to mothers who cannot breast-feed,
among other things.
REPAR Project
Author: Marcia Lima, Water Resources, Power & General Industry Manager
The main reason why FPD Rio has successfully taken
part in the Bid for the S-500 Diesel Pumps for
Petrobras' REPAR Refinery, located in Brazil's
southern region, back in December 2006, was the
extremely low NPSH available. The difficult application
work has been carefully developed in Rio by both
CSOA and Sales teams and thoroughly supported by
Desio's engineering people (Marco Vicari and Ulderico
Capponi).
Concerning environmental affairs, the Consortium ensures
protection through a modern environmental management
program that involves the participation of all employees. The
ALUMAR Environmental Park serves the purpose of fostering
environmental education activities to stimulate the community’s
and the Company’s commitment to the environment. Add to that,
it aims at to protect the 1800 hectares of extensive green area,
with regional fauna and flora. In 2007 this constant search for
sustainable development led to the Company being named for the
third year running as one of the most sustainable corporations in
the world, during the World Economic Forum in Davos,
Switzerland.
So, every FLOWSERVE employee, by supporting
ALCOA/ALUMAR to improve its inventory and to have more
reliable and efficient equipment in operation, can also feel proud
of being part of this partnership and contributing to have a better
world for us to live.
Another key point for FPD winning this job was the
technical and highly professional work developed
together with the customer's engineering, which lead to
successfully having horizontal centerline mounted pump
type written up in the specifications. All those efforts
were rewarded with the receipt of Petrobra's US $ 1.8
MM Purchase Order for (03) 6 UZDL 25 , 400 HP pump
units.
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During the design and bidding phases all the possible options
for supplying the customer with the most competitive offer from
Flowserve have been exhaustively reviewed and analyzed and,
due to Petrobras' necessity of starting up the pumps at the
refinery in the beginning of 2008 and also due to the huge
workload at the Desio facility at the time of the order receipt,
there was an agreement on manufacturing the complete pumps
at Rio de Janeiro plant. The manufacturing was ahead the
schedule and the pump units were delivered in December 2007.

This is the second order involving such type of pump received

by FPD Rio de Janeiro. In the late 90's (07) 10 UZDL 25 pumps
running at 1800 rpm were supplied to PETROBRAS-OSBRA
pipeline. Now, with this job, Rio facility has proven to be
capable of producing and delivering UZDL pumps and can be
considered as an alternate sourcing whenever needed.

SÃO SEBASTIÃO Project

Author: Marcia Lima, Water Resources, Power & General Industry Manager
7
Back in April 2007, FPD Rio de Janeiro has received an order from
Petrobras for three loading pumps for the São Sebastião Terminal in
São Paulo - Brazil. The US $ 2.47 MM order comprised (02) 20 QLC
23 / 2500 HP and (01) 14 QLC 18 / 250 HP canned pumps units
with 12.5 m and 8.0 m can lengths, respectively. It was a result of a
continued and extremely professional work during the design phase
together with the customer's engineers, which lead to a strong
influence on the specifications and to have the VS7 conception
written up. This has allowed FPD to offer its double casing wet pit
volute vertically suspended canned pumps with great advantage over
the competition.
The pumps are currently being manufactured at Rio facility and are
expected to be delivered in the 1st Q of 2008.
The influence on customer's specifications during design phase is one
of the most powerful sales' tools for many specific market niches and,
given Flowserve's comprehensive product portfolio, can always bring
considerable competitiveness advantage.
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GUARAREMA Project
Author: Marcia Lima, Water Resources, Power & General Industry Manager

The high energy Brazilian pump market has ever been On the other hand, Sulzer, which does not have BB3
dominated by Sulzer Pumps, which holds the leadership pumps locally available is now obliged to import the
of the offshore Brazilian market with its GSG pump line MSD bareshaft pumps from their manufacturing facility
locally manufactured. Due to their enormous installed in Portland (USA) and to package them out of their
basis and to the required minimum local content , plant in São Paulo - Brazil, whenever it is involved in
PETROBRAS has always requested BB5 pump bids requesting such pump configuration.
configuration for such applications.
Another important and positive factor for improving
Fortunately this scenery is now being changed: after
FLOWSERVE's competitiveness is the availability of the
more than 5 years of hard teamwork of both Sales and
DMX pump line manufactured out of our Mendoza's
CSOA teams, supported by some FLOWSERVE's key
facility (Argentina), since, due to the MERCOSUR
marketing and product experts and specialists,
international agreement, no import duties are applicable
PETROBRAS has started to specify BB3 pumps to
to the transactions between Brazil and Argentina. This, of
some of its main projects at the design phase. During
course, represents a considerable price advantage when
that period of time a considerable number of technical
competing against Sulzer's pumps imported from the
lectures and presentations sponsored by FLOWSERVE
USA.
had been attended by PETROBRAS's experts,
managers, engineers and technicians. Also, some of
those key individuals have been taken to visit certain
installations around the world where there are
FLOWSERVE BB3 pumps successfully operating.

The first official bid requesting BB3 pumps for the

GUARAREMA project happened in April 2007.
8
FLOWSERVE has offered DMX pumps and was awarded
with the first order for this pump line to PETROBRAS in
November 2007. The USD $ 6.2 MM order involves (03)
6 x 13 DMX / A-6, 2500 HP pump units to be delivered in
September 2008. Much more than the absolute booking
value, this is priceless order for FLOWSERVE, since it
represents an important bench mark and is the result of a
tremendous corporative team work, which involved key
people from various units and facilities worldwide and,
more recently, from Mendoza and Rio facilities. The
Thanks to a deep knowledge of both the market and our
bareshaft pumps, which will be supplied with FSD seals
product portfolio, as well as the knowledge of the
and a Seal Oil System for double seals protection, will be
competitor's products, strengths and weaknesses and
manufactured in Mendoza plant, while the pump units will
specially to the teamwork between Pumps and Seals
be assembled and packaged out of Rio de Janeiro plant.
Divisions and Rio de Janeiro and Mendoza facilities,
FLOWSERVE has managed to defeat Sulzer's hegemony
This focused and professional work has enabled
in the Brazilian multistage pump market, which lasted for
FLOWSERVE to mitigate Sulzer's enormous advantage
over than 30 years and became able to participate as a
due to their capacity of locally producing their pumps.
real player in the high energy pumps market and to explore
We can now also offer locally manufactured pumps with
its great potential.
competitive pricing and leadtimes.
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MINATITLAN Project
Author: Santiago Rugerio, Customer Service Order Acquisition Application Engineer Mexico
Flowserve consolidates its presence in the Mexican Oil & Gas Market
Petróleos Mexicanos (PEMEX) is The Mexican State-
owned oil company, which has into its Refinery Net 6
plants:
1) Cadereyta in the state of Nuevo Leon
2) Madero in the State of Tamaulipas
3) Salamanca in the state of Guanajuato.
4) Tula in the state of Hidalgo
5) Salina Cruz in the state of Oaxaca
6) Minatitlán in the state of Veracruz
The basic infrastructure of Pemex:
In 2004 Pemex released the Budget to expand the
Minatiltlán Refinery capacity, from 180 MBD to 280-306
MBD, the new mix of raw material that will feed this
refinery is 63% of Maya Crude Oil; it is the heaviest and
abundant in the Mexican production platform.
Minatitlán would increase the processing of Residual Oil, it
includes the installation of a Decoke system, to improve
margin. For your reference according to Pemex
(September 2006), Madero Refinery which refines 80% of
heavy crude oil has a margin of USD 17.50, Cadereyta
with 55-60% of heavy crude oil has a margin of USD 11 to
13.
Before the expansion Minatitlán has a margin of USD 3.40
The margin is the difference between the cost of Raw
material minus the cost of Finished product (Gasoline).
The Minatitlán expansion Project was split in 5 packages:
Flowserve started to received PO from Package II and
Package VI then in January 2006 the final award for the
biggest one, Package V, was assigned to Flowserve. Many
factors were critical to get In-house these Orders with a total
value around USD 12.6 MM some of the outstanding ones:
1) Total engagement of the Top management during the
key phases to take decisions and approvals.
2) Flowserve Product Portfolio to fulfill the Customer
needs.
3) Key agreement with Flowserve Suppliers (Motor, FSD,
Turbines) to get aggressive prices.
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And obviously all the Flowserve associates who participate
with their tremendous knowledge to make the difference.
The above was critical to close the door to the Competitors
and keep up the Flowserve leadership supplying Decoke
systems.
Aftermarket was another winner for both FPD & FSD which
will harvest the parts and repairs that are expected mainly
for the Deleyed Coking plant which is one of the most
aggressive services in the refinery.
All these pumps were shipped during 2007 from Santa
Clara most of them, Vernon, Chesapeake and Brantford.
The Future.
1) Reconfiguration of Salina Cruz refinery, addition of a new
train of 155 barrels of crude oil per day, will become one of
the world’s largest refineries, with the capacity to refine
455,000 barrels of crude oil per day.
2) Reconfiguration of Salamanca and Tula, even though
Tula will not be expanded, it will only include a Decoke
system.
3) In the long term, Tuxpan in the state of Veracruz has
being mentioned as the place for a new refinery with a
capacity of 300,000 bd.

HNAY-CCO-AMUAY Project
Author: Mariangelica Contreras, Customer Service Order Adquisition Aplication Engineer Venezuela

Ditech has been awarded as EPC for this project

“The New Hydro treatement Plant in Amuay refinery
(PDVSA CRP)”. The total project included 34 pumps
and the first 25 pumps was requested, and the next
9 pumps will follows soon. The refinery of Amuay is
one of the biggest refineries in Venezuela and has a
big aftermarket.
10
This RFQ was the most important to the vendor, It is
important maintain a good relationship for next’s
RFQ. HDE
Back in August 2006 we quoted first a budgetary
proposal, later in March 2007, they requested as
revised proposal considered DDP condition of
delivery. The last October 2007 we delivered a final
proposal. In this moment customer started a revision
and discussion with terms and conditions, technical
details and prices, sales contractors department HDX
started final negotiation, last December. HPX

Last 19 December 2007, we won an order for total

project that included $ 2.871.000 (millions of
dollars).
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Market
Author: Francisco Longo, Customer Service Order Acquisition Manager Brazil
Oil & Gas goes on as a booming market in Brazil in the next years
FLOWSERVE's perspectives for the comming years
regarding the Oil & Gas market in Brazil are really fantastic,
once Petrobras has stated in its strategic plan issued earlier
in August this year that its main goal is to become one of the
5 largest energy companies in the world by 2015. Therefore
huge investments are forecasted to the next few years. Just
for the 5 year period 2008-2012, the total investments will
reach $ 112 billion Dollars. From this total amount US $ 97
billion will to be invested in the Brazilian market. The US $
15 billion balance are planned to be used in investments in
other countries where Petrobras has activities, which are:
Angola, Argentina, Bolivia, Colombia, Nigeria, Turkey, USA
and Venezuela.
Proven Reserves
One of the most important factors which will support
Petrobras' growth plan is that, per BP's annual research
published earlier in 2007, Brazil is the country which has
been having the biggest proven oil reserves' growth in the
last 20 years, being, therefore, among the countries with the
16 largest reserves in the world.
Last month, with the announcement of its largest oil field -
the Tupi offshore field - the reserves have grown more than
50%. Thus, Brazil is now among the 12 largest proven
reserves in the world, with 21 billion barrels of oil.
From the amount to be invested in Brazil (US $ 97 billion),
about 56% will be destinated to upstream, 32% to
downstream and the balance in energy generation and
distribution.
The current oil demand in the Brazilian market is
approximately 2 million BPD and Petrobras has already
reached its autonomy in both production and refining. Even
so, according to its strategic plan, Petrobras is targeting an
40% increase on its refining capacity in order to exceed the
local internal demand in, approximately, 500 thousand BPD,
thus becoming a real oil trading company.
11
Deep-water Exploration
About 65% of the oil in the Brazilian territory is in the
offshore region of the Atlantic laying under the deep sea
(over 400 m (1300 ft) depth). Therefore, Petrobras has
been improving its drilling activities in crescent water
depths, thus becoming the holder of the highest technology
in oil prospecting and production in deep water. Its own
reported records of oil production from deep water have
been beaten by Petrobras every year.
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Petrobras’ Numbers in Brazil (2006)

Net Earnings $ 88,890 MM USD

Flowserve in Petrobras
12
Net Income $ 14,560 MM USD Flowserve has always been
Proved Reserves 14 Billion barrels of Oil Equivalent
part of Petrobras' technological
development. Since its
Productive Wells 12,895 (725 offshore) establishment in Brazil in the
mid 1950's, Flowserve has been
Production Platforms 103 (76 fixed; 27 floating) supplying Petrobras with diverse
types of equipment from its
Daily Production 1,920 thousands barrels per day of oil and LPG
heritage brands: Pacific,
Refineries 16 Worthington, Byron Jackson,
Pleuger, I-R, etc and is currently
Decoker Systems 7 the pump manufacturer which
has biggest installed basis in
Refining Capacity 1,870 thousands barrels per day
Petrobras, with more than 5000
Pipelines 31,089 Km pumps in operation.

Tanker Fleet 155

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FPD Pumps Installed at Petrobras

2%
2%
3%

47%
13%

11%

5,443 Pumps Installed (2006 Ref)

22%

API Overhung ANSI Overhung Vertical Suspended Shaft

Impeller Between Bearings Rotary Type Reciprocating Type
Sump Type

Petrobras is a nationalist company operating in a very

Since 2004, HPX pumps are being manufactured
nationalist market. Therefore, a nationalization index over
locally in the Rio de Janeiro facility, which it is also
85% is required for their main equipment. So, the Brazilian
expected to start manufacturing HDX pumps in 2008.
market must be served locally by the biggest global
manufacturers: besides Flowserve, both Sulzer and KSB
Fortunately Petrobras, which is Flowserve's most 13
important customer in Brazil, recognizes all those
have local very well equipped and qualified manufacturing
efforts and welcomes every improvement made on the
plants. To face such strong competition and technical
technological development of the oil industry.
challenges, Flowserve has been gradually developing its
flagship products in order to fulfill the requirements of the
internal demand.

Market Watch
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Special Events
Oil & Gas Show and Exhibitions
Author: José Degennaro, Customer Service Order Acquisition Manager Argentina

Once again Flowserve unveiled a new tradeshow booth
during AOG ’07 that is Latin-American’s largest and most
important Oil & Gas exhibition, held Oct. 22 through 25 in
Buenos Aires, Argentina. In this opportunity all corporative
divisions, FPD, FCD and FSD, decided to participate in this
show which featured 349,591 square feet and hosted 28,106
local and worldwide attendees.
This tradeshow was supported by "Instituto Argentino del
Petróleo" which is an association that embraces most Oil &
Gas Producers and Refining companies of the region,
received the presence of 384 national and international
exhibitors with domestic operations and counted with 26
foreign exhibitors as well.
The new 719 square foot Flowserve booth featured an
updated look to emphasize our corporative logo that
attracted great amount of visitors who were invited to
enter into “Experience in Motion”. They also could
observe with much interest internal and external
constructive details of a multi-stage pump DMX
4x6x11 (6 stages) manufactured in Mendoza plant
that was displayed in very attractive way on a frame
specially designed for this event. Finally, visitors were
able to appreciate different models of mechanical
seals and valves that were exhibited throughout the
booth.
Another attraction to the booth was the presentation of
many corporative videos relating different issues of
Flowserve's activities that were shown in a 42"
Plasma Screen TV located in the main panel.

AOG tradeshow played an important role for

entertaining many key clients who were invited to share
an excellent catering with our representatives, some of
whom should be highlighted, such as Jim Quain, Abdel 14
Espir, Manuel Fernandez and Gustavo Diaz who
traveled specially for this exhibition.

Internal and external

constructive details of a multi-
stage pump DMX 4x6x11 (6
stages) manufactured in
Mendoza plant.

The excitement produced by the new booth and attractions were successful for reaffirming company’s local leadership in pump
and mechanical seals markets and our presentation and quality was highly recognized by all visitors.
 VERTICALInsight
CSOA

Vertical Products Training in Taneytown

Author: Alan Mattos, Customer Service Order Acquisition Application Engineer Brazil

Taneytown Business Unit offered, in September, a classic
product training classes for Verticals (VTP, QL, AFV, API &
APKD pumps), Pleuger / Byron Jackson deepwell
submersibles in which Alan Mattos and Mariangélica
Contreras, LACSOA Application Engineers, took part.
The objectives of this Product Training sessions was to
understand the products, how to apply in proposal
activity, selling features, competition, design standards
and options and, most important, to meet Taneytown
employees with hands-on shop classes.

Below Pat Broskey

doing the
presentation about
Byron Jackson &
Pleuger deepwell
submersibles.

The picture shows (left to right): Luis Morillo(Venezuela),

Emad Kronfli (Taneytown), Mariangelica Contreras
(Venezuela), Alexis Rojo (Venezuela), Maria Isabel 15
Velasquez (Venezuela), Alfredo Badell (Venezuela),
Alan Mattos (Brazil), Luis Guillermo Quitana (Colombia)

Solution of Problems & Decision Making Training in Rio

Author: Francisco Longo, Customer Service Order Acquisition Manager Brazil

In the last week of October, the Rio's Human

Resources Dept promoted the "Solution
Problems & Decision Making" Training in which
Francisco Longo , Rio's CSOA took part.
This 24 hours of training was held by Kepner
Tregoe with very nice impact for the attendees.

In the picture, from left: Arthur Tibau (Order

Fulfilmnet Manager), Neiron Guimaraes (IT
Manager), Renata Bravo (Human Resources
Supervisor), Francisco Longo (CSOA Manager
Brazil) and Jorcelino Diniz (Sales Manager).
 VERTICALInsight
CSOA
News
LA CSOA has again a certified Green Belt member
Author: José Degennaro, Customer Service Order Acquisition Manager Argentina
About one year ago, an opportunity was detected to increase
bookings in Argentina for ANSI / ISO pumps. This
opportunity matches with Flowserve’s Global initiative to
increase CPI’s (Chemical Process Industry) and GI (General
Industry) market presence with the purpose to decrease in
the long run Flowserve Argentina’s current dependence from
O & G (Oil and Gas) market.
Mr. José De Gennaro was trained on CIP-GB knowledge at
Mendoza, Argentina by Mr. Roberto Cocchia (BB Argentina)
and Juan Ley (BB Mexico). During the GB project cycle
(QMAIC- Quantify, Measure, Analyze, Implement and
Control) Mr. José De Gennaro got into the day by day
discipline to make good progress on this project on top of his
normal work load.
Results: Primary Metric: ANSI-ISO PUMPS WIN / QUOTED RATIO
Also, on a bi-weekly basis, a meeting was held with team
members for those bi-weekly assignments.
After these meetings, a progress report was delivered that
included action items and a specific date of completion
assigned accordingly.
One of the key factors to succeed was the fact to involve
Argentina’s Distributor for Industrial Equipment (Centrifugal)
as team member. Once the project was targeted, it was
agreed with Centrifugal to maintain Flowserve India’s CPX
bare shaft pumps in its stock In addition to this, pumps,
seals, buy outs and package price lists were issued for AE’s
and Salesmen of the region in order to simplify process to
make proposals.
The picture shows the team
during one of the
brainstorming sessions
(from left to right Maximo 16
Ilutovich, Ezequiel Mazzieri,
José De Gennaro, Luis
Rosin)
A second phase of this project will be
initiated with the following goal:
- Bolivia and Chile’s Sales Team acquire
knowledge of this project and implement
this new sales tool in the region taking
advantage of the same stock.
This new GB certification gave LACSOA the
chance to apply CIP tools again which
represent the best practice to achieve work
process improvements. By the disciplined
implementation of these tools and with a
collaborative team environment, the
expected results can certainly be achieved.
 VERTICALInsight
CSOA

Team Building
Codfish in Rio
Author: Claudia Fernandes, Customer Service Order Acquisition Application Engineer Brazil
This is a traditional meeting in celebration to Christmas
and New Year.
The organizer and sponsor of this event is Francisco
Longo, Customer Service Order Acquisition Manager
Brazil.
It takes place in a famous and traditional Portuguese
restaurant, specialized in codfish: "KING OF THE
CODFISH", near Rio's Plant.
It is a tradition to have codfish plates for dinner at
Christmas' eve, in Brazil.
In 2007 this meeting happened on December 19th.
Besides all Rio CSOA people, some other company's
employees and customer friends have always
participated.

Team Birthday’s Dates

January 24 Vera Franco - CSOA Brazil
April 07 Marcia Lima - CSOA Brazil
May 05 Javier Aguilar - CSOA Mexico 17
18 Carlos Segovia - CSOA Mexico
June 07 Jorge Daponte - CSOA Argentina
30 Claudia Fernandes - CSOA Brazil
July 20 Gabriela Lopez - CSOA Mexico
25 Santiago Rugerio - CSOA Mexico
August 30 Mariangelica Contreras - CSOA Venezuela
October 30 Diego Badia - CSOA Mexico
November 22 José Degenaro - CSOA Argentina
Editorial Team
December 22 Alan Mattos - CSOA Brazil
Francisco Longo
26 Francisco Longo - CSOA Brazil
Marcia Lima
Claudia Fernandes

CSOA – CPI/GI CSOA – Oil/Gas CSOA – Power CSOA – Water LACSOA – All Markets
J.R. Andraos – CSOA Mgr. Jeff Pratt – CSOA Mgr. Mike Radio – CSOA Mgr. Ted Wayne – CSOA Mgr. Carlos Segovia – CSOA Mgr.
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