AVEVA acquires Shell IP as US backs Schneider merger
UK software giant AVEVA Group clinched a double whammy across the Pond as US regulators sanctioned the merger with Schneider Electric and Shell in Texas sold key design IP for the oil & gas sector to the Cambridge company.
US approval for the Schneider deal hinged on a review by the Committee on Foreign Investments in the United States and the green light has now been given.
The clearance triggers a £650 million windfall payout to AVEVA shareholders but HMRC says this will most likely be subject to tax for UK stakeholders.
In another landmark deal, AVEVA has acquired the intellectual property rights to the engineering design database and design productivity software known as EDD and PDMSi, developed by Shell International Exploration and Production Inc., a member of the Royal Dutch Shell plc group.
The EDD solution tool has been developed by Shell to improve project efficiency by automating design processes that would lead to time and cost savings.
The PDMSi application layer has been proven to reduce drawing production time by up to 85 per cent on past Shell Deepwater projects.
AVEVA was the first to pioneer the concept of the digital asset. The Shell deal sees the company draw on its 3D visualisation and digital data management expertise to further enhance the software both for Shell and other operators.
Signing the agreement at Shell’s offices in Houston, Bert Natalicchio, VP Engineering & SMART for Shell said: “Collaboration between world-class companies is crucial if we are to drive innovation in the oil and gas sector and create a safer and more efficient industry.
“AVEVA’s entire software portfolio can be used by EPCs on Shell Capital and Operational projects and may be used within the Shell ProjectVantage ecosystem platform.”
AVEVA will extend the EDD and PDMSi improvements and efficiency gains into its standard software portfolio to be made available to every plant operator and the engineering, procurement and construction companies that serve them.
This software is applicable across a number of engineering industries including oil & gas and marine to pharmaceuticals, chemicals, power, mining and pulp and paper.
Shell and AVEVA have been at the forefront of digital innovations for decades, collaborating on the Research & Development of state-of-the-art 3D design solutions and intelligent visualisation software to create, manage and maintain physical assets.
Steen Lomholt-Thomsen, chief revenue officer, AVEVA said: “AVEVA has enjoyed a strong business relationship with Shell. The majority of Shell’s upstream offshore and downstream operating assets were designed using AVEVA technology.
“Now, we are building on our strong foundations of proven project success and increased operational efficiency by extending our shared capabilities further still.”
The advances achieved by Shell in utilising EDD and PDMSi may now be offered to other owner operators who want to explore how digitalisation can help their teams operate efficiently.
• PHOTOGRAPH SHOWS: Bert Natalicchio (left), VP Engineering & SMART at Shell and Steen Lomholt-Thomsen, chief revenue officer at AVEVA