Latest News from GE

Thursday, February 4th, 2010

First Order for new GE Oil & Gas VetcoGray SVXT S-Series Subsea Tree
SVXT to Drive Installation and Cost-Efficiency of Future Production in UK and Dutch Sectors of Southern North Sea Oil and Gas Fields

GE Oil & Gas’ Drilling and Production business today confirmed the first order for its breakthrough new VetcoGray SVXT S-series subsea tree. GE is supplying Shell U.K. Ltd with the new SVXT tree.

Alongside earlier front-end engineering design (FEED) work undertaken on behalf of Shell U.K. Ltd and Nederlandse Aardolie Maatschappij B.V. (NAM), this order is awarded under GE’s existing regional frame agreement with Shell. The SVXT will be delivered to Shell in the fourth quarter of 2010 and installed in the first quarter of 2011.

Jan Duinhoven, SWEEP project manager for Shell NAM, said: “Reliable, more compact and cost effective solutions are required in the mature Southern North Sea, to be able to profitably develop the remaining gas accumulations.”

Matt Corbin, regional leader U.K. and continental Europe, GE Oil & Gas said: “Designed and built in Aberdeen, the new SVXT S-Series subsea tree’s lighter, more streamlined structure is a great example of the reliable innovation mindset underpinning GE’s entire drilling and production portfolio. We’re proud to be continuing our partnership with Shell U.K. and NAM through the first order for the new SVXT.”

The SVXT S-Series VetcoGray subsea tree was recently unveiled at the 2009 Offshore Europe Oil & Gas Conference and Exhibition held in Aberdeen in September. The SVXT merges horizontal and vertical tree technology and is intended for harsh, shallow water fields, predominantly in the North Sea but also for global export. The streamlined SVXT design reduces tree weight by over 20 percent, significantly decreases height and delivers essential functionality in a pre-engineered, pre-configured 'modular' approach. Low-cost installation of the new SVXT is achieved through a design that enables deployment using standard offshore jack-up drilling rigs without the need for major modifications.

Additional SVXT design features include smaller tree and fisher-friendly wellhead protection structures, as well as an innovative barrier approach that removes the need for a separate tree cap.

GE Oil & Gas Drilling and Production offers a full range of integrated subsea solutions, including trees, controls, manifolds, connection systems, subsea power and processing. All of these systems are designed to provide competitive lead times, reliability and lowest installed cost. With 20 years of operating experience in harsh environments, GE’s VetcoGray shallow-water tree systems are an established industry benchmark.

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GE Oil & Gas Selected for Slovak Compression Stations Upgrade to Meet New EU Emissions Standards
Slovensky Plynarensky Priemysel (SPP), a leading Slovak energy company, has awarded GE Oil & Gas a $102 million (€68 million) contract to upgrade three pipeline compression stations, bringing the facilities into compliance with new European Union directives to decrease carbon dioxide and nitrous oxide emissions.

GE will supply SPP with advanced dry low emissions (DLE) systems technology and additional equipment for the conversion of seven GE PGT25 gas turbines and one PCL602 gas compressor. The equipment is located at the Vel’ke Kapusany, Vel’ke Zlievce and Ivanka pri Nitre compression stations that are part of a gas pipeline system in the Slovak Republic operated by Eustream, which is 100% owned by SPP.

The upgrade projects will be implemented over the next five years, as the seven gas turbines progressively reach 50,000 operating hours. The final two units will be modified by 2015, the year before the new European Union emissions standards come into force in Slovakia. The units feature LM2500 aeroderivative gas turbines that will be converted from standard annual combustors (SAC) to DLE systems for improved emissions control. Upon upgrade they will achieve NOx emissions below 75 mg/m3, enabling the plants to meet the new emissions regulations.

Mr. Rastislav Nukovic, director of strategic projects for Eustream said: “By implementing GE’s proven technology to recondition and upgrade our gas turbines, we can continue to successfully operate these units that were purchased in 1991. This is a far more cost-effective solution than replacing this equipment outright with new units and also helps us meet our ongoing environmental responsibilities.”

Jeff Nagel, vice president global services, GE Oil & Gas said: “GE is committed to helping customers boost performance and efficiency on a sustainable basis. We are able to apply the latest technology to manage the entire scope of large-scale facility modifications to meet the E.U.’s new emissions standards. This challenging SPP project includes the modification of the gas generator, power turbine, PCL compressor, control system, balance of plant and all other site works.”

SPP, based in Bratislava, has been a gas industry leader for more than 150 years. Its subsidiary, Eustream, is the largest natural gas transporter within the European Union with a transmission capacity more than 90 bcm/a. Eustream grants access to the Slovak transmission network on a transparent and non-discriminatory basis and provides a complete range of natural gas transmission services. The company’s main business partners are international energy concerns. Eustream (formerly SPP – preprava, a.s.) began its independent life after the legal unbundling of transmission activities from its parent company Slovenský plynárenský priemysel, a.s. (SPP) on 1st July 2006.

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GE Oil & Gas Awarded Contract Worth Over $200M for GASCO’s IGD Project, Abu Dhabi
GE Oil & Gas has been awarded a contract worth over $200 million, by Hyundai Engineering & Construction Company (HDEC), to supply eight gas turbines and related services for the Abu Dhabi Gas Industries (GASCO) integrated gas development (IGD) project at Habshan in Abu Dhabi.

Supporting the government’s initiative to meet the rising demand for energy within the Emirate, the Habshan 5 IGD project is one of the largest gas processing complexes in the world.

Combined, the eight GE Frame 6B gas turbine units will provide more than 250 megawatts of power for the Habshan 5 plant, which will have four gas processing trains and will add a total processing capacity of 2,000 Million Cubic Feet (MCFD) of gas per day.

Abdul Aziz Al Ameri, senior vice president, GASCO Major Projects Group said: “Habshan 5 is an important part of GASCO’s plan to increase overall gas processing capacity to meet growing natural gas demand. The supply of reliable power for the plant is obviously critical to the long-term success of the project. Selection of GE by HDEC was approved by us considering its technology leadership and proven track record as a long-term partner.”

Mohammad Ayoub, operations leader and regional general manager, Middle East, GE Oil & Gas said: “We are delighted to be supporting the IGD project which builds upon our already strong presence in Abu Dhabi, where we have supplied more than 70% of the gas turbines in GASCO’s installed fleet. With more than 900 units in service worldwide, the reliability, efficiency and versatility of GE’s Frame 6 gas turbine technology are proven in a wide range of applications.”

The eight GE Oil & Gas gas turbines being supplied for the Habshan 5 project are Frame 6B models, each with a power capacity of 32 megawatts at design site conditions. In addition, all eight units will be equipped with advanced dry low NOx (DLN) combustors for emissions control, lube oil systems and other auxiliary equipment.

The gas turbines are scheduled for shipment during the first half of 2011, with commercial operation of the Habshan 5 facility expected by the end of 2012.

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GE Hosts Global Oil and Gas Summit on Innovation
Leaders of many of the world’s largest oil and gas producers are among the 900 industry representatives gathering in Florence, Italy, today to attend the 11th GE Oil & Gas 2010 Annual Meeting. The Innovation Now theme of this year’s event explores the tough technology challenges facing the global energy industry.

In his keynote address, Claudi Santiago, president and CEO of GE Oil & Gas, said: “Meeting rising oil and gas demand and maintaining energy security in a reset global economy requires renewed focus and partnership. Opening up new production frontiers demands innovation and reliable technology that minimizes risk, drives production efficiency and addresses environmental sustainability.”

Santiago noted: “GE is tackling this head-on with technology solutions to support our customers enhance oil recovery and access unconventional, complex reservoirs. We are innovating to meet tomorrow’s energy challenges and over the next three years will spend more than $500 million on R&D.”

During the Annual Meeting, GE Oil & Gas announced a number of project awards, including:

* A contract worth over $200 million, awarded by Hyundai Engineering & Construction Company (HDEC), to supply eight gas turbines and related services, for the Abu Dhabi Gas Industries (GASCO) integrated gas development (IGD) project at Habshan in Abu Dhabi;
* A $102 million contract awarded by Slovensky Plynarensky Priemysel (SPP) to upgrade three pipeline compression stations in Slovakia, bringing the facilities into compliance with new European Union directives to decrease carbon dioxide and nitrous oxide emissions; and,
* The first order by Shell U.K. Ltd of GE’s new VetcoGray SVXT S-Series subsea tree. Intended for harsh, shallow-water fields, the new tree’s streamlined design reduces weight by over 20 percent. This, and other reliable technology features, provides a more compact and efficient solution for operators.

Annual Meeting highlights include presentations by executives from leading oil and gas companies such as Chevron, Gazprom, BP, RasGas, ExxonMobil, Petrobras and Conoco Phillips. Topics will include the role of new technologies in overcoming exploration and production project challenges, the development of remote and deepwater resources, and challenges ahead for the energy industry.

The Annual Meeting also features seminars and workshops on GE’s new and emerging technologies and tours of GE’s state-of-the-art manufacturing and testing facilities in Florence and Massa.

For more information on the 2010 GE Oil & Gas Annual Meeting visit:
www.oilandgasannualmeeting.com/agenda.asp.

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GE Oil & Gas Technology Drives Efficiency Upgrade at KRIBHCO Fertilizer Plant, India

GE Oil & Gas will apply advanced compressor technology in an upgrade project to increase the productivity of Krishak Bharati Cooperative Limited’s (KRIBHCO) urea, ammonia and bio-fertilizer manufacturing facility at Hazira in the state of Gujarat, India.

Under the terms of the agreement GE will supply nine compressor upgrade packages to be installed across the plant’s three existing CO2 trains.

GE will utilize its latest impeller designs to upgrade the CO2 compressors, enabling them to pump 45% more flow without changing the steam turbine drivers. Each unit will absorb approximately seven megawatts with an average efficiency of 75%, the highest efficiency rate in the industry for a CO2 compressor application. In addition, the impellers will be manufactured with advanced materials to meet the challenging requirements of sour gas (humid CO2) applications.

GE will upgrade the compressor packages without changing the balance-of-plant or the original compressor footprints. The contract, which is scheduled for completion in the first half of 2011, also includes the supply of anti-surge valves and spare rotors.

S. Jaggia, general manager (technical), KRIBHCO said: “KRIBHCO has selected GE Oil & Gas for this important upgrade project due to its expertise, position as designer of the original compressors and its ability to meet our challenging upgrade schedule.”

Commenting Deven Shukla, global services—India, GE Oil & Gas said: “Despite the significant and challenging scale of the KRIBHCO upgrade across nine compressors for three CO2 trains, our reliable services approach will restrict outage to coincide with the plant’s revamp schedule. In addition to speed of upgrade, once installed our advanced impeller technology will improve plant efficiency and performance by extending the maintenance cycle, and, ultimately, boost production output.”

Equipment for the upgrade project will be manufactured primarily at GE Oil & Gas facilities in Italy and France. Local support will be used to supervise assembly and commissioning activities.

The upgrade project underscores GE Oil & Gas’ ongoing commitment to India. GE is supporting Indian customers through the local presence of an experienced and professional team. India-based engineers work in conjunction with GE’s field service engineering team and global supply chain to ensure continuous support to customers in the region.

About GE Oil & Gas
GE Oil & Gas (www.ge.com/oilandgas) is a world leader in advanced technology equipment and services for all segments of the oil and gas industry, from drilling and production, LNG, pipelines and storage to industrial power generation, refining and petrochemicals. We also provide pipeline integrity solutions, including inspection and data management. As part of our 'Innovation Now' customer focus and commitment, GE Oil & Gas leverages technological innovation from other GE businesses, such as aviation and healthcare, to continuously improve oil and gas industry performance and productivity. GE Oil & Gas employs more than 12,000 people worldwide and operates in over 100 countries.

About GE
GE is a diversified global infrastructure, finance and media company that is built to meet essential world needs. From energy, water, transportation and health, to access to money and information, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company’s Web site at www.ge.com. GE is Imagination at Work.

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