GE Oil & Gas, a division of
General Electric Company
), received a 16-year service contract extension worth $333
million for Sakhalin-2, a liquefied natural gas (LNG) plant in
sub-arctic Russia. The service agreement includes four GE Frame
7EA gas turbines, which drive process trains for the Sakhalin LNG
plant, and five GE Frame 5 gas turbines used for electricity
production at the plant.
Additionally, General Electric also signed a memorandum of
understanding (MOU) with the Sakhalin government to develop power
projects and meet the future energy needs of Sakhalin Island. The
MOU includes aeroderivative gas turbines, gas engines, coal
gasification and wind power.
Sakhalin Energy operates the project under a production sharing
agreement with the Russian Federation. Amid the most challenging
situations, General Electric aims to deliver technological
innovation and services for the Sakhalin region. The
project will also generate employment opportunities for the
local people and help them in enhancing their skills.
The extension of the contract agreement for maintenance and
services will further lead to more production availability. In
the last reported quarter, Oil & Gas segment of General
Electric recorded the highest revenue growth (up 11%).
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General Electric is one of the most diversified technology and
financial service corporations in the world, competing with
industry big wigs such as
Macquarie Infrastructure Company LLC
). Its segments include Power & Water, Oil & Gas, Energy
Management, Aviation, Healthcare, Transportation, Home &
Business Solutions, and GE Capital. GE Oil & Gas provides
highly developed technology equipment and services to onshore,
offshore and sub-sea oil & gas projects.
General Electric currently has a Zacks Rank #3 (Hold). One of its
Tyco International Ltd
) carries a Zacks Rank #2 (Buy).