General Electric invests $1 billion in the oil and gas sector upgrade in Russia
General Electric (GE) is planning to invest $1 billion by 2020 to support upgrading of the Russian oil and gas sector under the cooperation agreement signed with Rosneft at St. Petersburg Economic Forum, as reported by GE media office.
The companies plan to found a joint venture to implement their plans on investing into Russian projects. During the cooperation, the companies will work on setting up the engineering and R&D centers in Russia. GE will also supply two gas turbine units 77MW for the Rosneft project at Vankor group of fields. The units will be manufactured at the plant built by joint venture of GE, Inter RAO UES and Rostec – “Russian Gas Turbines”, as reported by media office of the industrial giant.
The Strategic Cooperation Agreement was signed by Igor Sechin, President of Rosneft, and Jeff Immelt, GE General Manager. It covers development of fields at the Arctic shelf, application of GE technologies for gas monetization, including efficient use of associated petroleum gas, LNG, and application of oil recovery enhancement technologies.
"Strategic cooperation with GE will allow most effective onshore and offshore development of the Rosneft field using the latest and safest technologies, which are localized in Russia," GE media office quoted Igor Sechin's words.
In the opinion of Jeff Immelt, the company's participation in the large-scale projects of Rosneft will be mutually beneficial not only for both companies, but also for the upgrading of oil and gas industry in Russia as a whole.