GE (NYSE: GE) and OJSC Rosneft, a leader in Russia’s petroleum industry, today signed a memorandum of understanding (MOU) that lays the foundation for the two companies to jointly evaluate and develop commercial opportunities in oil and gas exploration and production in the Russian Federation.
The MOU was signed by John Krenicki, GE vice chairman and president and CEO of GE Energy; and Igor Sechin, president of Rosneft. The agreement calls for a strategic, cooperative relationship that would (1) leverage GE Oil & Gas technologies to help Rosneft improve efficiency and yields in its oil and gas exploration and recovery operations, and (2) explore opportunities to jointly develop, manufacture and sell equipment for use in Russia’s oil and gas industry.
“The MOU underscores GE’s interest in discussing, jointly with the Russian government and Russian oil and gas companies, the technology needs of the Russian oil and gas industry today and in the future, identifying key areas of cooperation to create value for the Russian Federation and GE,” said Krenicki. “GE Oil & Gas has developed a comprehensive portfolio that we believe can meet the challenges of the unique Russian oil and gas environment.”
Under the terms of the MOU, GE and Rosneft will form a joint working group to identify the range of potential opportunities for short and long–term opportunities, including equipment for Arctic offshore field development, gas monetization technologies and enhanced oil recovery and difficult reserve development.
GE Oil & Gas has developed technology for increasing gas monetization and recovery efficiency as well as developing fields in the most extreme conditions. GE Oil & Gas has a history of partnering with major oil and gas companies to provide package solutions throughout the oil and gas reservoir life cycle.
GE is committed to investing in local leadership, capability, coverage and the supply chain to serve global customers better and faster. Partnering with local resources had led to technology transfer and local companies becoming worldwide GE suppliers. GE’s localization success stories include ventures in Russia’s gas turbine mechanical drive and power sectors, as well as endeavors in China, Brazil, India, Latin America and the Middle East.
GE Oil & Gas, headquartered in Florence, Italy, employs 33,000 people and has operations in approximately 130 countries worldwide, generating more than $14 billion of annual revenue. GE sells advanced technology equipment and services for all segments of the offshore and onshore oil and gas industry, from subsea, drilling and production, LNG, pipelines and storage to industrial power generation, refining and petrochemicals.
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Rosneft is the leader of Russia’s petroleum industry, and ranks among the world’s top publicly traded oil and gas companies. The Company is primarily engaged in exploration and production of hydrocarbons, production of petroleum products and petrochemicals, and marketing of outputs. Rosneft has been included in the Russian Government’s List of Strategic Enterprises and Organizations. The state holds 75.16% in the Company (through OJSC ROSNEFTEGAZ), while approximately 15% of shares are in free-float (see shareholder structure). Rosneft is widely engaged in exploration and production across all key hydrocarbon regions of Russia: Western Siberia, Southern and Central Russia, Timan-Pechora, Eastern Siberia and the Far East. In addition, the Company participates in several exploration projects in Kazakhstan and Algeria.
Kate Culman, Masto Public Relations
P: +1 518 786 6488 - E: kate.culman[.]mastopr.com.
Ken Darling, Masto Public Relations
P: +1 518 786 6488 - E: kenneth.darling[.]ge.com.
Fabio Pianini, GE Oil & Gas
P: +39 055 423 8872 - E: fabio.pianini[.]ge.com.
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