New Agreement Expands GE’s Role in Saudi Oil & Gas Sector
GE (NYSE: GE) today signed a Corporate Procurement Agreement (CPA) with Saudi Aramco, the national oil company of Saudi Arabia, which establishes a long-term framework for the supply of GE turbomachinery equipment and services to support the efficient production of oil and gas in the Kingdom.
Nassir Al-Yami, Executive Director of Materials Supply, Saudi Aramco said: “We are delighted to have a solid framework of cooperation in place with GE Oil & Gas. Over the last 50 years GE has played an important role in supporting the efficient production of oil and gas in the Kingdom. I’m confident that today’s agreement paves the way for even greater accomplishments in the coming years.”
John Krenicki, Vice Chairman of GE and President and CEO of GE Energy said: “This agreement reflects GE’s commitment to long- term investment in Saudi Arabia and elevates our strong relationship with Saudi Aramco to an exciting new level. Moving beyond project-by-project oil and gas sector transactions will enable GE to support the optimized performance of Saudi Aramco’s installed turbomachinery fleet. Through the new framework we agreed, GE will provide the technology leadership, service excellence, skills development and training required to support Saudi Arabia’s long-term oil and gas production goals.”
Setting out the terms of cooperation between the partners and a standardized contractual format for future projects, the CPA is designed to streamline and simplify working processes, leading to reduced costs and shorter cycle times for Saudi Aramco’s projects.
In addition, the CPA includes a joint technology development program that builds on GE’s turbomachinery expertise and includes cooperation on initiatives focused on optimizing the performance of Saudi Aramco’s installed fleet of turbomachinery equipment, which includes over 60 gas turbines, 90 compressors and more than 100 pumps.
With several strategic public and private partnerships in various growth sectors including oil & gas, energy, aviation, healthcare and water, Saudi Arabia is home to seven GE facilities and the largest regional workforce of over 700 employees.
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