MUNICH, Germany (Reuters) - German industrial group Siemens (>> Siemens AG) is set to face a storm of questions on Tuesday over its $7.6 billion (£5 billion) decision to buy U.S. oilfield equipment maker Dresser-Rand (>> Dresser-Rand Group Inc.).

Investors attending its annual shareholder meeting will want to know how the acquisition, agreed in September in a scramble not to be left behind by the U.S. shale boom, will benefit them, given the halving of the oil price since then to around $49.

Siemens, whose products range from trains to turbines, is undergoing the latest in a series of transformations under Chief Executive Joe Kaeser, a company veteran and former finance chief who ousted Peter Loescher as CEO in a boardroom coup in 2013.

Kaeser wants to make his mark on the company and has launched a programme called "Vision 2020" designed to focus the company on its core strengths of electrification, automation and digitalisation and get rid of more consumer-oriented businesses.

But his reputation may hinge on the Dresser-Rand acquisition, already seen as expensive at the time and whose wisdom is being increasingly questioned as investments in U.S. shale exploration dry up with oil prices close to six-year lows.

Translated into euros, the price is today almost one billion euros ($1.13 billion) more expensive than when the deal was announced. It is expected to close this summer. Siemens has declined to say whether it was hedged for the currency risk.

Investors want more clarity on Kaeser's vision and ability to carry it through, as well as on corporate governance under 71 year-old Chairman Gerhard Cromme, who presided over the chaotic ousting of Loescher as well as that of the previous CEO.

"We will ask questions on the company's new strategy and the acquisition of U.S. company Dresser-Rand, urge the management board to focus on executing the portfolio optimisation plan and strengthening project management, and seek more detailed information about the board evaluation," said Hans-Christoph Hirt, director of Hermes EOS, which advises fund managers and other institutional investors.

Kaeser said last month he would not even think of walking away from the Dresser-Rand deal, for which Siemens would have to pay a break-up fee of $400 million.

"And if it kind of goes to my gut feel, I would actually think that by the time we have finished the integration of Dresser-Rand the oil price is going to be north of $85 again," he told investors at a capital markets day in Berlin.

Ahead of the AGM, Siemens will release quarterly results expected to show a 2 percent decline in profit from its industrial divisions and flat total revenue.

(Reporting by Georgina Prodhan, editing by David Evans)

By Georgina Prodhan

Stocks treated in this article : Dresser-Rand Group Inc., Siemens AG