Rosneft and GE expand cooperation
- Business & Finance
Rosneft and General Electric have signed an agreement to set up a series of joint ventures.
The Agreement aims to expand science and technology cooperation between these two companies. In its first phase the Agreement envisages the creation of two specialized centers:
Application Engineering and Training Center. The center will focus on the development of Rosneft projects through the application of the broad GE Oil & Gas portfolio of products and technologies.
The center will focus its activity on the development of gas sales solutions including LNG and CNG, power generation solutions, production enhancement including artificial lift technologies, offshore and subsea equipment, and refining and petrochemical technologies.
Research and Development center. The focus of this center will be on the development of joint technologies and upgrading of existing technologies of the companies.
Top-priority activity areas of the R&D Center will be gas monetization activities, refining and petrochemical, including GTL technologies and new polymers, offshore and subsea projects, including development of low temperature materials, and production enhancement.
The initial amount of $20 M will be contributed by both companies on a parity basis. Additional aggregate financing of $50 M will be made by the parties upon agreement on specific projects. Rosneft and GE intend to jointly invest up to US$400 million in the centers through 2020.
The centers will allow Rosneft to maintain efficient onshore production and to enhance Arctic and offshore shelf projects by implementing the most sophisticated and safe technologies.
Igor Sechin commented that, “A project-based approach envisaged for the activities of the centers drastically increases the impact and efficiency of direct financing of science and technology projects critical to the development of the Russian economy. Moreover, the implementation of this Agreement will create new jobs and train high level specialist for the needs of Rosneft and the Russian economy.”
GE Chairman and CEO Jeff Immelt said: “We see great opportunities in the sustainable growth of the oil and gas sector in Russia.”