GE Oil & Gas was the division of
General Electric
General Electric Company (GE) is an American multinational conglomerate founded in 1892, and incorporated in New York state and headquartered in Boston. The company operated in sectors including healthcare, aviation, power, renewable en ...
that owned its investments in the
petroleum industry
The petroleum industry, also known as the oil industry or the oil patch, includes the global processes of exploration, extraction, refining, transportation (often by oil tankers and pipelines), and marketing of petroleum products. The large ...
. In July 2017, this division was merged with
Baker Hughes.
The division supplied equipment for the
petroleum industry
The petroleum industry, also known as the oil industry or the oil patch, includes the global processes of exploration, extraction, refining, transportation (often by oil tankers and pipelines), and marketing of petroleum products. The large ...
including
drilling,
subsea
Subsea technology involves fully submerged ocean equipment, operations, or applications, especially when some distance offshore, in deep ocean waters, or on the seabed. The term ''subsea'' is frequently used in connection with oceanography, marin ...
and
offshore,
onshore,
LNG
Liquefied natural gas (LNG) is natural gas (predominantly methane, CH4, with some mixture of ethane, C2H6) that has been cooled down to liquid form for ease and safety of non-pressurized storage or transport. It takes up about 1/600th the volu ...
, distributed gas,
oil pipeline and
oil storage,
oil refinery
An oil refinery or petroleum refinery is an industrial process plant where petroleum (crude oil) is transformed and refined into useful products such as gasoline (petrol), diesel fuel, asphalt base, fuel oils, heating oil, kerosene, lique ...
and
petrochemical
Petrochemicals (sometimes abbreviated as petchems) are the chemical products obtained from petroleum by refining. Some chemical compounds made from petroleum are also obtained from other fossil fuels, such as coal or natural gas, or renewable so ...
. GE Oil & Gas also designed and manufactured surface and
subsea
Subsea technology involves fully submerged ocean equipment, operations, or applications, especially when some distance offshore, in deep ocean waters, or on the seabed. The term ''subsea'' is frequently used in connection with oceanography, marin ...
drilling and production systems, equipment for floating production platforms,
gas compressor
A compressor is a mechanical device that increases the pressure of a gas by reducing its volume. An air compressor is a specific type of gas compressor.
Compressors are similar to pumps: both increase the pressure on a fluid and both can tran ...
s,
gas turbine
A gas turbine, also called a combustion turbine, is a type of continuous flow internal combustion engine. The main parts common to all gas turbine engines form the power-producing part (known as the gas generator or core) and are, in the directio ...
s,
turboexpander
A turboexpander, also referred to as a turbo-expander or an expansion turbine, is a centrifugal or axial-flow turbine, through which a high-pressure gas is expanded to produce work that is often used to drive a compressor or generator.
Because ...
s, high
pressure reactors, industrial
electricity generation
Electricity generation is the process of generating electric power from sources of primary energy. For utilities in the electric power industry, it is the stage prior to its delivery ( transmission, distribution, etc.) to end users or its s ...
. GE Oil & Gas also provided pipeline integrity solutions, sensor-based measurement, inspection, and
condition monitoring
Condition monitoring (colloquially, CM) is the process of monitoring a parameter of condition in machinery (vibration, temperature etc.), in order to identify a significant change which is indicative of a developing fault. It is a major component o ...
, controls and
radiation measurement solutions.
In 2016, GE Oil & Gas employed approximately 37,000 people, serving customers in over 140 countries.
The division was part of the
GE Power
GE Power (formerly known as GE Energy) is an American energy technology company, owned by General Electric.
Structure
As of July 2019, GE Power is divided into the following divisions:
* GE Gas Power (formerly Alstom Power Turbomachines), bas ...
(formerly GE Energy) division of
General Electric
General Electric Company (GE) is an American multinational conglomerate founded in 1892, and incorporated in New York state and headquartered in Boston. The company operated in sectors including healthcare, aviation, power, renewable en ...
.
History
Formation
GE entered the
petroleum industry
The petroleum industry, also known as the oil industry or the oil patch, includes the global processes of exploration, extraction, refining, transportation (often by oil tankers and pipelines), and marketing of petroleum products. The large ...
in 1994 with the acquisition of Italian company
Nuovo Pignone (previously owned by
ENI S.p.A.).
Acquisitions and divestments
2000-2010
In 2002, the division acquired
Bently Nevada, a
condition monitoring
Condition monitoring (colloquially, CM) is the process of monitoring a parameter of condition in machinery (vibration, temperature etc.), in order to identify a significant change which is indicative of a developing fault. It is a major component o ...
instrumentation company that provides services for
sensors, systems and monitoring machinery
vibration
Vibration is a mechanical phenomenon whereby oscillations occur about an equilibrium point. The word comes from Latin ''vibrationem'' ("shaking, brandishing"). The oscillations may be periodic, such as the motion of a pendulum—or random, su ...
. Products included plant asset management systems related to vibration monitoring, machinery protection, software and engineering services. Bently Nevada was added to the
GE Measurement & Control division.
In 2007, GE acquired
Vetco
Vetco was established in July 2004 and operated through its subsidiaries Vetco Gray and Vetco Aibel AS. Vetco was the result of a consortium consisting of the private equity firms Candover, 3i and JP Morgan Partners taking over ABB's oil and g ...
's Vetco Gray for $1.9 billion. VetcoGray operated in around 30 countries and was one of the world's leading suppliers of drilling, completion and production equipment for on- and offshore oil and gas fields, including subsea applications.
In October 2007, GE acquired Sondex Plc, a UK-based oilfield services technology company that specialized in the engineering and manufacturing of directional drilling and formation evaluation systems and wireline tools for the production of oil and gas, for £290 million.
In April 2008, GE acquired Hydril Pressure Control, a supplier of pressure control equipment used in the oil and gas drilling industry, with focus on deep and ultra-deepwater applications. Its product lines included
blowout preventer
A blowout preventer (BOP) (pronounced B-O-P, not "bop") is a specialized valve or similar mechanical device, used to seal, control and monitor oil well, oil and gas wells to prevent Blowout (well drilling), blowouts, the uncontrolled release of ...
systems, parts, repair, and field services.
2011
In March 2011, GE acquired
Wellstream
Wellstream Holdings plc is a British company which designs and manufactures flexible pipeline systems for the oil and gas industry. It is listed on the London Stock Exchange and was a constituent of the FTSE 250 Index before being acquired b ...
, a British company which designed and manufactures flexible risers and flowline products for oil and gas transportation in the subsea production industry, for approximately £800 million.
In April 2011, GE acquired
John Wood Group
John Wood Group plc, commonly known as Wood, is a British multinational engineering and consulting business with headquarters in Aberdeen, Scotland. It is listed on the London Stock Exchange as well as being a constituent of the FTSE 250 Index. ...
’s Well Support Division, which allowed for it to expand into the drilling and surface manufacturing and services portfolio, for $2.8 billion. Its products included
electric submersible pumps (ESP),
wellhead
A wellhead is the component at the surface of an oil or gas well that provides the structural and pressure-containing interface for the drilling and production equipment.
The primary purpose of a wellhead is to provide the suspension point and ...
s, trees and logging services.
In 2011, GE also acquired
Dresser Inc., which delivers compression, flow technology, measurement and distribution infrastructure and services. Its portfolio includes valves, actuators, meters, switches, regulators, piping products and natural gas-fueled engines for compression.
2012
In 2012, GE acquired PRESENS, a Norwegian company which develop and supply pressure, temperature and flow measurement sensor solutions. These products sit within the company's Digital Solutions business.
Also In 2012, GE acquired Naxys, a provider of subsea leak detection and condition monitoring sensors based on passive acoustic technology. These products allow operators to monitor the integrity of their subsea installations, and form part of the company's Digital Solutions business.
2013
In 2013 GE Oil & Gas completed a $3.3 billion acquisition of Lufkin Industries Inc., a manufacturing company that produces artificial lift technologies that help bring oil and gas to the surface, such as oilfield pumping units and power transmission gear boxes.
In 2013 GE Oil & Gas also acquired Salof Companies, who design and manufacture small-scale
liquefied natural gas (LNG) technologies.
Also in 2013, GE Oil & Gas acquired Allen Gearing Solutions, a privately held designer, manufacturer and service provider of gears for industrial and marine applications. The company produces high-power gearing solutions, specializing in
epicyclic gears that typically have a higher power density than parallel shaft gear systems.
2014
In June 2014, GE acquired the Reciprocating Compression Division of
Cameron International for $550 million. The division provided reciprocating compression equipment and aftermarket parts and services for oil and gas production, gas processing, gas distribution and independent power industries.
2015
In 2015, GE acquired Advantec, a provider of subsea intervention equipment and services, as part of the company's strategy to expand its position as a provider of subsea production equipment and services solutions.
2016/2017
At the end of October 2016, it was announced that General Electric was under negotiations for a deal valued at about $30 billion to combine GE Oil & Gas with
Baker Hughes. The transaction would create a publicly traded entity controlled by GE. It was announced that GE Oil & Gas would sell off its water treatment business as part of its divestment agreement with
Baker Hughes. The deal was cleared by the EU in May 2017, and by the DOJ in June 2017. The merger agreement was approved by shareholders at the end of June 2017. On July 3, 2017, the transaction was completed and Baker Hughes became a GE company.
2019
In 2019, GE announced plans to reduce its ownership in
Baker Hughes from 50.4% to 38.4% losing majority control. In September 2019, GE sold a large enough stake in Baker Hughes to lose its status as majority shareholder.
Partnerships
The Digital Solutions business has also announced a partnership with
BP to develop and pilot a new digital solution for Asset Performance Management in BP's offshore operations.
The business has also partnered with Paradigm, an independent software developer for the oil and gas industry, to deliver reservoir driven production optimization (RDPO) to optimize field level production.
Technology Solutions Centers (TSC)
GE Oil & Gas is one of the GE businesses featured in GE's network of fifteen Technology Solutions Centers (TSC), which are located in key technology hubs around the world. The purpose of these centers is to foster collaboration and allow customers to better understand how GE products and services fit into their projects. They feature a combination of interactive video content, scale models and live demonstrations.
Global Research Center
In 2013, GE announced they had selected a site in Downtown Oklahoma City for a Global Research Center dedicated to oil and gas technology. The center will focus on accelerating mid to later stage oil and gas technologies developed in GE's Global Research labs, including production systems, well construction, water use optimization,
solutions and energy systems. The Center opened in October 2016.
Notable projects and collaborations
Ichthys LNG Project
In January 2012, GE Oil & Gas announced they had won contracts worth more than US$1 billion to supply equipment and services for the
Ichthys
The ichthys or ichthus (), from the Greek (, 1st cent. AD Koine Greek pronunciation: , "fish") is (in its modern rendition) a symbol consisting of two intersecting arcs, the ends of the right side extending beyond the meeting point so as to re ...
LNG project in
Australia. GE will provide rotating equipment, including gas turbines and compressors, and associated floating production storage and offloading and a central processing facility. GE will also supply subsea production systems for the offshore portion of the project as well as subsea connectors for a 552-mile pipeline.
GLS Holding S.A.
In January 2013 GE Oil & Gas and the Angolan group GLS Holding S.A. announced the formation of a new joint venture, GE-GLS Oil & Gas Angola Limited, to better support Angola's growing oil and gas sector. This agreement includes an initial investment of US$175 million to build a new manufacturing facility in
Soyo
Soyo (formerly known as ''Santo António do Zaire'') is a city, with a population of 200,920 (2014 census), and a municipality, with a population of 227,175 (2014 census), located in the province of Zaire in Angola, at the mouth of the Congo riv ...
that will supply subsea equipment to the oil and gas industry in
Angola
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.
Statoil
In January 2015, GE Oil & Gas and
Statoil announced a strategic collaboration to advance more environmentally friendly and economically sustainable technologies for oil and gas production. The collaboration is focused on technological innovations that will allow the oil and gas industry to reduce emissions and local community impacts while improving productivity.
This collaboration has included two Open Innovation Challenges that invited businesses, institutions and individuals to develop potential solutions to make energy production more
sustainable. The first Open Innovation Challenge was issued in January 2015 and required entrants to find ways to reduce the amount of sand needed on oil wells. Over 100 submissions were received from applicants in more than 30 countries. Technical experts and management from Statoil and GE Oil & Gas served as judges. The winners were announced in July 2015 and were awarded an initial cash prize of US$25,000, with the potential to receive additional funding from a discretionary prize pool of US$375,000 for potential development or commercialization upon meeting certain additional conditions.
The second Open Innovation Challenge was issued in July 2015 and asked entrants to find solutions for reducing fresh water usage and improving
water treatment
Water treatment is any process that improves the quality of water to make it appropriate for a specific end-use. The end use may be drinking, industrial water supply, irrigation, river flow maintenance, water recreation or many other uses, inc ...
in the development of onshore
unconventional oil and gas reservoirs. The winners were announced in February 2016 and received the same prize.
In February 2016 GE Oil & Gas signed a
master service agreement
A master service agreement, sometimes known as a framework agreement, is a contract reached between parties, in which the parties agree to most of the terms that will govern future transactions or future agreements.
A master agreement delineates ...
with Statoil for new subsea projects that will enable GE to continue to support Statoil in a low oil price environment. The global agreement forms the basis for potential new contracts for subsea equipment and services on new projects and field developments and is valid globally until 2025.
PT Donggi Senoro LNG
In November 2015 GE Oil & Gas announced they had signed a Contractual Service Agreement with Asian energy company PT Donggi Senoro LNG. The agreement will see GE Oil & Gas provide full package services and monitor non-GE equipment supplied by other Original Equipment Manufacturers (OEMs). The long-term deal is a milestone for GE Oil & Gas as they will act as a single contractual supplier.
References
{{Authority control
General Electric Infrastructure subsidiaries
2017 mergers and acquisitions