GE Oil & Gas has secured two frame agreements with a total value of more than $300 million to supply compression equipment and services to StatoilHydro.
The contracts cover the delivery of complete gas turbine and electric motor driven compressor sets, compressor revamp bundles, commissioning, capital and operational spares for high-pressure, gas re-injection applications, and services and maintenance activities of new and existing machines.
In 2005, GE successfully completed tests on the highest-pressure sour gas re-injection train ever built, which is scheduled for installation in the Kashagan oil field of the North Caspian Sea. "Those tests validated the unparalleled capability of our compressors to operate at the ultra-high pressures required for today's most challenging sour gas re-injection applications," noted Claudi Santiago, president and CEO of GE Oil & Gas.
Statoil and GE Oil & Gas' cooperation stems back to the 1970s with the supply of compressors for the Statfjord platform in the North Sea. StatoilHydro currently operates several high-pressure, gas re-injection projects where GE's high-pressure compression technology could also be utilized.
Under the new frame agreement, equipment will be manufactured at GE Oil & Gas facilities in Florence and Massa, Italy, which include state-of-the-art full load testing capabilities to replicate on site conditions thus, considerably reducing risks. Shipments are expected to begin in early 2009, while the first start-ups are anticipated for the 2010-2011 timeframe.
The GE compressor sets will operate with discharge pressures in the range of 250 bars and up. Drivers will include electric motors and gas turbines (10 to 60 MW.)
The frame agreement for services will be supported by the GE Oil & Gas Global Services group in Florence, along with service centers in Norway and other global locations. Services will be provided for all existing and future installations of GE equipment.
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