GE Comp. Technology Selected to Increase Production in Oman

For more efficient extraction of gas from depleted wells in four of its gas fields, Petroleum Development Oman (PDO) has turned to advanced, high-pressure compression technology from GE Oil & Gas.

Under a multi-year, multi-project contract valued at more than US$250 million, GE will supply 16 electric motor-driven centrifugal compressors for high-pressure injection applications in the Kauther, Saih Nihayda and Yibal gas fields of Oman.

The compressors will be manufactured at GE Oil & Gas facilities in Florence, Italy and will be shipped to Oman over the period of 2009-2015, for a total of 14 projects that will come on line between 2010 and 2016.

"For more than three decades, GE Oil & Gas has been dedicated to the development of state-of-the-art technology for challenging gas injection applications, such as sustaining and improving production from depleted wells," said Claudi Santiago, President and CEO of GE Oil & Gas. "Our experience with these types of projects worldwide was a key factor in our selection by PDO to provide compressors for upcoming projects that will help maintain the levels of gas production throughout the region."

The new projects reinforce GE's existing relationship with PDO, a major exploration and production company in the Sultanate of Oman. Last year, GE received two contracts from PDO to supply centrifugal compressors for projects in the Saih Rawl gas field of central Oman and the Harweel oil field of south Oman.

PDO accounts for more than 80% of the country's crude oil production and nearly all of its natural gas supply. The company is owned by the government of Oman (60%), the Shell Group (34%), Total (4%) and Partex (2%). Gas fields, however, are operated by PDO exclusively on behalf of the Omani government.

In addition to Oman, GE Oil & Gas is active throughout the Middle East, where the demand for technology and services to support the oil and gas industry continues to grow.

"We are pleased to be supporting the leading role that the Middle East plays in fulfilling much of the world's energy requirements," said Mohammad Ayoub, Operations Leader and Region General Manager -- Middle East for GE Oil & Gas. "We continue to expand our broad portfolio of products and services to help meet the pressing energy and environmental needs of customers throughout the region."