HomeCoal FiredEquipmentGE wins North Sea contract for more than $75 million

GE wins North Sea contract for more than $75 million

HOUSTON, Texas, Oct. 18, 2000à‚– GE Aeroderivative and Package Services (GEAPS) will provide repair and field services for GE aeroderivative gas turbines owned by two Norway-based companies, Statoil and Norsk Hydro. The contract totals more than US $75 million.

The four-year agreement has an option for a two-year extension. It covers at least 85% of the depot repairs and field service on 87 GE LM2500 and LM2500+ aeroderivative gas turbines plus 10 spare engines on Statoil and Norsk Hydro North Sea production platforms.

These gas turbines are used for both mechanical drive and power generation service. Any new GE gas turbines delivered to Statoil and Norsk Hydro over the contract period will be covered by this agreement.

Norsk Hydro and Statoil pooled their inventories of rotable exchange modules and engines, and initiated a bid process for the depot and field service repair of these engines. Two GE Power Systems businesses – GEAPS and Florence, Italy-based Nuovo Pignone à‚– won the contract, with Nuovo Pignone as the oil/gas lead.

The contract is structured as a framework-type agreement, setting depot and field service pricing levels and repair turn-times. This contract also complements existing frame agreements that Statoil Oil and Norsk Hydro have with GE for repair and services of Nuovo Pignone compressors installed on offshore platforms.

“Combined, Statoil and Norsk Hydro have the largest industrial fleet of GE LM aeroderivative gas turbines. When the time came for both companies to select a repair and field service contractor, GE, as the owner of the technology, provided a viable and strong option,” said Jim Robertson, General Manager of GEAPS.

“GEAPS and Nuovo Pignone have extensive experience with large oil and gas fleet customers. Our depots in Agotnes, Norway and Rheden, The Netherlands provide a local resource for our European customers. We also have highly-qualified field technicians certified for offshore platform work that can be dispatched quickly to provide on site service,” Robertson added.

The majority of depot work for the Statoil/Norsk Hydro contract will be performed at GEAPS’ Agotnes facility.

Statoil is one of the world’s largest net sellers of crude oil, and a substantial supplier of natural gas to Europe. It ranks as the biggest retailer of petrol and other oil products in Scandinavia. Founded in 1972, Statoil is wholly owned by the Norwegian state.

Norsk Hydro is an industrial company based on the use of natural resources, with the aim of meeting needs for food, energy and materials. Norsk Hydro is one of Europe’s largest integrated energy companies, playing a major role in the production and marketing of energy based on oil, gas and electricity in Europe.

GE Power Systems (https://gepower.com) is a supplier of power generation technology, energy services and management systems with 2000 revenue estimated at $14 billion.