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Saudi Aramco Selects GE for $500 Million Expansion Agreements - Shaybah project to enhance oil recovery and support economic expansion (NYSE: GE)
Saudi Aramco Selects GE for $500 Million Expansion Agreements


PRZOOM - /newswire/ - Shaybah, Saudi Arabia, 2010/12/14 - Shaybah project to enhance oil recovery and support economic expansion (NYSE: GE). NYSE: GE

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GE today announced it has been selected by Saudi Aramco, the state-owned national oil company, for agreements totaling nearly $500 million to supply a broad range of equipment and services for an expansion of the Shaybah gas-oil processing facilities. The project is expected to enable Saudi Aramco to enhance its oil recovery efforts and spur further economic growth in Saudi Arabia.

The agreements demonstrate the strength of GE Energy’s integrated high-technology equipment and services portfolio and reflect GE’s commitment to continued investment and localization in the region. With one of the world’s fastest growing economies, Saudi Arabia continues to present significant opportunities for technology innovation and infrastructure development.

Shaybah, which is Saudi Aramco’s most remote oil field, is located in the southeastern section of the Kingdom. It already is highly productive, following a 50 percent capacity upgrade in June 2009 from half-a-million barrels per day (bpd) to 750,000 bpd of Arabian Extra Light crude. The new expansion is expected to enable Saudi Aramco to further increase crude production to 1 million bpd and increase the gas-oil ratio (GOR) of the field from 1,800 to 7,200 standard cubic feet per stock tank barrel (scf/stb).

“This latest project with Saudi Aramco reflects GE’s commitment to localization and sustainable growth in the Kingdom. As Saudi Arabia forges ahead with its ambitious national development plans, we look forward to continue to support Saudi Aramco and other customers in the region with GE’s high-tech multi-business approach,” said Joseph Anis, GE Energy’s President for the Middle East.

“Our desire to deliver a complete suite of high-technology and service solutions, while meeting Saudi Aramco’s compressed project timeline, were essential factors in being selected to deliver the extensive scope of this important project,” noted Anis.

To generate the additional 729 megawatts of power, GE is supplying 11 gas turbine-generators, 44 compressors, motors and services. This will bring the total supply of GE gas turbines to Saudi Aramco to more than 110 and the number of GE centrifugal compressors to nearly 100.

A key feature of the expansion, the valuable natural gas liquid (NGL) components from gas produced at Shaybah will be recovered through the construction of the new Sabkha NGL recovery plant which will process 2.4 billion standard cubic feet per day (scfd) of low-sulfur sweet gas and extract 264,000 bpd of NGL. The gas is used in petrochemical applications.

The GE Frame 7EA gas turbines for Shaybah's expansion project have been used in previous Saudi Aramco applications. Similar GE units have been operating since 1998 in Shaybah, one of the most challenging environments in Saudi Arabia. The 7EA gas turbines to be delivered to Shaybah will be equipped with GE's advanced Dry Low NOx combustion systems to reduce emissions. All 44 GE centrifugal compressors will be driven by GE electric motors. GE will ship the equipment during the first half of 2012. In addition, services and training will be provided through the GE Energy Manufacturing Technology Center in Dammam, Saudi Arabia. The 10,000 square meter facility represents a $100 million investment in the largest GE center of excellence worldwide.

With a presence that spans almost 80 years in Saudi Arabia, GE has expanded its energy presence in the Kingdom through public-private partnerships and a strong footprint of facilities in service repair support and customer training centers in power, water and oil and gas. With more than 800 GE employees, Saudi Arabia has the largest GE workforce in the Middle East.

About GE
GE ( is a diversified infrastructure, finance and media company taking on the world’s toughest challenges. From aircraft engines and power generation to financial services, health care solutions and television programming, GE operates in more than 100 countries and employs about 300,000 people worldwide.

GE serves the energy sector by developing and deploying technology that helps make efficient use of natural resources. With nearly 85,000 global employees and 2009 revenues of $40 billion, GE Energy ( is one of the world’s leading suppliers of power generation and energy delivery technologies. The businesses that comprise GE Energy—GE Power & Water, GE Energy Services and GE Oil & Gas—work together to provide integrated product and service solutions in all areas of the energy industry including coal, oil, natural gas and nuclear energy; renewable resources such as water, wind, solar and biogas; and other alternative fuels.

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Saudi Aramco Selects GE for $500 Million Expansion Agreements

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