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GE Oil & Gas Affiliate Signs Global Frame Agreement to Supply Equipment and Services to Petronas and Its Production Sharing Contractors

15 June 2009

GE Oil & Gas through affiliate Nuovo Pignone S.p.A has signed a global frame agreement with PETRONAS, Malaysia's state-owned oil company, for the supply of a range of gas turbines and compressors for PETRONAS' projects in Malaysia and other parts of the world.

The signing of this agreement follows the signing of other global frame agreements initiated by PETRONAS with its key equipment suppliers to streamline its procurement activity throughout the PETRONAS Group as well as its production sharing contractors.

“GE Oil & Gas has a very diversified portfolio of products and services to offer PETRONAS,” said Sandro Malquori, Asia Pacific regional sales manager for GE Oil & Gas. “The global frame agreement will facilitate the procurement of long-lead time items.”

GE's frame agreement is structured to optimize project time and cost. All terms and conditions are negotiated for the duration of the relationship, avoiding the need to spend time negotiating on a project-by-project basis. Equipment supply is standardized to a great extent in terms of applicable specifications, technical solutions and documentation, resulting in lower engineering costs and quality improvements that GE will share with PETRONAS.

In addition to equipment supply, the new arrangement with PETRONAS also includes a long term service agreement. GE Oil & Gas through its Malaysian partner Sapura Power Services Sdn Bhd will undertake to provide a wide range of services designed to enhance equipment efficiency and performance during the period of the frame work agreement, including spare parts, maintenance, repairs and on-line monitoring.

Since it was founded in 1974, PETRONAS has grown to be an integrated oil and gas company with business interests in more than 30 countries. It is among the Fortune Global 500 companies, ranking as the fifth most profitable oil company last year. In addition to Malaysia and Southeast Asia, PETRONAS has a growing investment presence in several key regions of the world including Africa, Asia Pacific, the Middle East, Russia and Europe.