GE’s Subsea Systems executes first major contract

GE Oil & Gas has announced the first major equipment delivery by its Subsea Systems business, for a major operator, under a contract established by its Angolan joint venture, GE-GLS Oil & Gas Angola Limited.

A primarily localized workforce assembled the first of 16 subsea production trees, destined for a development in the Atlantic Ocean, located in one of the first tranches of deepwater acreage offered by the Angolan government. The base scope of work includes a further 15 subsea production trees, 12 water injection trees, two water injection manifolds, four production manifolds, topside upgrades and associated equipment.

The delivery brought together a talented team from across GE Oil & Gas’ facilities in the UK, Norway, Angola and USA. The technology was designed and manufactured across various global subsea locations before being assembled locally in Angola, with the combination of proven, innovative technology – coupled with a skilled local workforce – facilitating the prompt delivery of quality products.

“This initial achievement is evidence of the successful partnership enabled by GE-GLS Oil & Gas Angola Limited,” said Dr. Eugenio Neto, president and CEO of GLS Holding, S.A. and vice president of the JV. “We announced our intentions to further support the development of Angola’s growing oil and gas industry and, after only a year, are proving our commitment to the country’s ‘Made in Angola’ pledge. Setting up in-country has significantly improved our speed-to-market, allowing us to execute on critical project deliverables in a timely fashion.”

Due largely to its offshore energy resources, Angola has undergone rapid transformation and economic growth in recent years, experiencing increased exploration and development activity over the last decade, making it one of the largest producers of crude oil in Africa.

The JV was set up to better support the country’s rapidly growing oil and gas sector, bringing new manufacturing and industrial technologies to Angola, while creating hundreds of direct and indirect jobs. GE Oil & Gas also has invested significantly in developing local expertise and capability, with Angolan nationals trained at GE’s UK-based Centres of Excellence for subsea systems, controls and systems engineering.

Originally announced in January 2013, the JV includes an initial investment of $175 million to build a new manufacturing facility in Soyo, in the province of Zaire, which will supply subsea equipment to the oil and gas industry in Angola. This first subsea production tree to be delivered under the JV was assembled at GE Oil & Gas’ existing site inside the Sonils Base at the Port of Luanda.

“Localization is about physically being where the customer is to ensure quality delivery on complex, remote projects,” said Marco Caccavale, President & CEO GE Oil & Gas for Sub-Saharan Africa. “GE’s global footprint enhances delivery of services, technologies and expertise, while empowering decision-making at a local level, ultimately bringing growth opportunities to all of the stakeholders involved.”

GE has been active in Angola since the late 1950s, supporting the development of the national oil industry. Earlier in 2012, GE Oil & Gas also signed an agreement with Angola LNG, operator of one of the world’s most modern LNG and processing facilities, for processing liquefied natural gas. GE also is a major supplier of gas turbines and compressors for the Angolan offshore energy sector.

Press Release, April 09, 2014

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