GE Oil & Gas Starts Strong in 2016 with More Than $700 Million of Innovative Customer Agreements

Feb. 2, 2016
GE Oil & Gas (NYSE: GE) today announced a series of innovative agreements totalling an estimated lifetime combined value of more than $700 million.

The new agreements integrate multiple elements of GE’s diverse customer offering, including digital solutions, meeting the changing needs of its global fullstream customer base.

The range of agreements announced today reflects GE Oil & Gas’s ability to flex to meet customers’ needs and the requirements of a challenging market. Through these customer relationships, GE Oil & Gas is providing comprehensive solutions to solve some of the most complex problems faced by the sector. The need to constantly innovate, in response to current industry needs, is a key theme of discussion among GE Oil & Gas customers at its Annual Meeting, held in Florence this week.

“We are proud of this strong start to 2016, reflecting the growing pull for our unmatched global fullstream offer and digital industrial capabilities,” said GE Oil & Gas President & CEO, Lorenzo Simonelli. “This shows that innovation and flexibility, built on foundations of partnership, advanced insights and technology, continue to resonate with the oil and gas sector. Now more than ever, our customers are looking to GE for the best minds and machines to optimize their technology and operations, from wellhead to refinery.”

The three agreements announced are as follows:

  • GE Oil & Gas has signed a landmark contract with Petroleum Development Oman (PDO) for the provision of reciprocating rod pump (RRP) equipment, commencing in the second quarter of 2016. This is GE’s first-ever contract awarded by PDO for the provision of integrated RRP equipment and services, and it’s aligned with PDO’s ‘In Country Value’ initiative. PDO’s ‘In Country Value’ strategy aims to promote localized manufacturing, develop Local Community Contractors (LCCs) and strengthen Omani talent development through training programs. GE Oil & Gas will sub-contract the manufacturing and fabrication of specific pumping unit’s structural components in Oman and also assemble select Lufkin Automation products in the country using local companies. The local contractors will also be trained on the various aspects of RRP assembly. The engagement of the LCC’s and the sub-contracting of work to the LCC’s is crucial to the success of the local talent development and local economy for the people of South Oman.
  • Building on its strong relationship with First Northeast Electric Power Engineering Co. (NEPC), GE Oil & Gas has been awarded a contract for the supply of an additional 135 MW steam turbine unit at the Palm Concepcion Power Corp. (PCPC) plant in the Philippines. The contract encompasses the design, manufacturing, assembling, delivery on site and installation of the STG set, and marks the third successful collaboration between GE and Chinese EPC NEPC.
  • Responding to customer needs for simplified, integrated support, GE Oil & Gas and SBM Offshore have agreed to the first ever global maintenance agreement for an entire fleet of FPSOs. Under the agreement, GE Oil & Gas will provide spare parts, depot overhauls, field services and digital solutions including Remote Monitoring & Diagnostics for the GE aero derivative gas turbines and both GE and non-GE electrical generators, centrifugal compressors and various auxiliary systems currently installed on SBM Offshore’s fleet of FPSOs operating in Sub-Saharan Africa and Brazil. This agreement will also cover future FPSO vessels in construction. This partnership is significant for both companies because it represents the first time a maintenance agreement is signed for an entire fleet of FPSOs at a global level which leverages GE Oil & Gas’ proven maintenance expertise while also providing SBM Offshore with its digital capabilities designed to provide customers with improved operational outcomes by leveraging the power of big data, analytics and intelligent operation.

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