Chevron Awards Long-Term Service Agreement for Gorgon Project in Australia to GE

Details

Published on Thursday, 19 July 2012 01:00

GE Entrusted with Mission Critical Services for One of the World’s Largest Gas Projects

22-Year Contractual Service Agreement Follows More than $1 Billion in Equipment Orders for Gorgon Project since 2008

Pact Highlights GE’s Breadth of Expertise in Supporting Global LNG Sector

July 19, 2012  - GE today announced it has signed a more than US$600 million 22-year contractual services agreement (CSA) with Chevron Australia Pty LTD to maintain the compressor trains and associated equipment that will be at the heart of the Gorgon Project off the northwestern coast of Australia.

Under the agreement, GE Oil & Gas’ Global Services division will provide Chevron Australia with scheduled maintenance, access to expertise through resident engineers, monitoring and diagnostics of the installed equipment coupled with engineering analytics, plus an inbuilt guarantee relating to continuity of production. As part of this collaboration, GE also will manage inventory, supplying initial spare components. The agreement will cover a period of 22 years, with GE’s first contract performance manager scheduled to begin working in Perth in October 2012.

“Companies around the world continue to express confidence in our services expertise, which enables them to operate as efficiently as possible over the long term. This agreement confirms our capability to meet the growing demand of the oil and gas industry for continuous monitoring and diagnostics of installed equipment globally and especially in areas that are becoming increasingly challenging from an environmental point of view. The underlying mega-trends of the oil and gas industry play to our strengths across the Oil & Gas value chain and that’s why our customers look at us for long-term partnerships,” said Dan Heintzelman, president and CEO of GE Oil & Gas.

The new CSA ensures the continued participation of Australian companies and the ongoing creation of economic growth opportunities for local communities in Western Australia. The new GE service and maintenance center in Jandakot, Perth, is expected to deliver 4,000 training days in 2013 for GE staff and employees of its customers.

Gorgon is one of the world's largest natural gas projects and the largest single resource natural gas project in Australia's history. The Gorgon Project will develop the Gorgon and Jansz/Io gas fields, located within the Greater Gorgon area, about 130 kilometers off the north-west coast of Western Australia. It includes the construction of a 15 million ton per annum (MTPA) Liquefied Natural Gas (LNG) plant on Barrow Island and a domestic gas plant with the capacity to provide 300 terajoules per day to supply gas to Western Australia. More information can be found on the Chevron Australia website.