GE Expands Its Batam Facility for New Line of Subsea Wellhead Equipment
- Business & Finance
GE today announced the largest expansion of its Batam manufacturing facility to date, with the construction of a high bay for a new line of subsea wellhead equipment that will further increase local content.
Making the announcement at the Indonesia Petroleum Association’s (IPA) 37th Annual Convention, Visal Leng, regional general manager of GE Oil & Gas Asia Pacific, said that the production of vertical subsea trees in Batam is a first for GE in Asia Pacific. The expansion will create up to 30 new jobs when fully operational.
“Our investment underscores our commitment to increase local content of GE technology and solutions in Indonesia,” said Leng. “GE Oil & Gas has invested more than USD$12 million in Batam since 2011 for plant expansion, technology upgrades and the new high bay workshop. We invest not only in physical assets and equipment, but also in building local capability through the transfer of knowledge and expertise from our global sites to the Batam team.”
Employees for the new high bay for vertical subsea trees will be trained according to the standards and practices at GE’s Aberdeen center of excellence. They also will receive additional training addressing localized content and requirements. The construction of the high bay is due for completion in June 2013, with the production of the subsea trees expected to start in November 2013.
“GE is committed to supporting the development of infrastructure in Indonesia, particularly in the oil and gas sector, one of the strongest contributors to our country’s economic growth,” said Handry Satriago, CEO of GE Indonesia. “The expansion of our Batam plant clearly reflects our focus on deepening our country presence here and confidence in the Indonesian economy and growth plans.”
The expansion is part of a suite of solutions GE showcased at the IPA convention and exhibition. Reflecting on the conference theme of “Investing in a Challenging Environment,” Leng added, “One of the challenges of the industry is the global shortage of oil and gas talent, and GE can contribute in this area and help Indonesia develop a strong pool of local capabilities.”
At the exhibition, GE focused on its innovative new solutions to meet the technology challenges of maturing fields, stranded gas as well as deep sea oil deposits that are not easy to extract. In addition to its subsea and artificial lift answers to enhanced oil recovery, GE presented its portfolio of solutions for unconventional resources that included the recently launched LNG In A Box™ system.
The LNG In A Box system is a small-scale plug-and-play, re-deployable liquefied natural gas (LNG) fueling solution based on proven technology. By combining technology, supply chain efficiency and the ability to industrialize at smaller scale, it enables an owner or operator to rapidly deploy an LNG fueling solution at a site in two months.
The system offers customers a more standardized modular fuelling solution covering an LNG production range of 10,000 to 50,000 gallons a day. It expands GE’s existing LNG portfolio and is the first unit available in a 10,000 gallons-a-day capacity that reduces demand-side adoption risks and requires very low CapEx and OpEx commitment.
GE has been in Indonesia since 1940, providing the latest technology and solutions in aviation, transportation, power generation, energy management, oil and gas, health and lighting. GE has a workforce of 800 local employees in its 10 facilities and project locations in Indonesia in addition to its country head office in Jakarta and two factories in Yogjakarta and Batam, and a service center in Bandung.
In February of this year, GE Chairman and CEO Jeff Immelt visited Indonesia and announced GE’s plan to spend USD$300 million in the next five years to support the country’s infrastructure development. This includes the expansion of Batam subsea manufacturing facility, as well as the establishment of GE Learning and Technology Center, a partnership with Perusahaan Listrik Negara (PLN), Garuda Indonesia and Pertamina, to provide a center for leadership and engineering, and the localization of GE applied technology. GE has invested more than USD$1billion in Indonesia to date.