Press releases

GE and ZKMK Sign Oil and Gas Equipment Services Agreement to Support Kazakhstan and Central Asian Growth


ASTANA, KAZAKHSTAN — July 26 2010 —GE Oil & Gas has signed a long-term technology transfer and license agreement with JSC ZKMK, the leading Kazak precision engineering plant operator, for the servicing of GE’s fleet of oil and gas turbomachinery equipment installed in the Republic of Kazakhstan and the Central Asia region.

According to the agreement, signed through GE Oil & Gas’ Italian entity Nuovo Pignone S.p.A., ZKMK will perform repair services on GE’s range of high efficiency, high performance gas turbines and centrifugal compressors installed in Kazakhstan and neighboring countries, including Kyrgyzstan, Turkmenistan, Uzbekistan and Azerbaijan.

Claudi Santiago, President and CEO, GE Oil & Gas said: “Our agreement with ZKMK reflects GE’s ‘company to country’ localization commitment, providing our customers in Kazakhstan and Central Asia with greater access to our world-class oil and gas engineering services expertise. ZKMK is a highly regarded Kazak engineering champion and a great partner for GE. Working together, we will deliver a compelling oil and gas services offering to ensure that the mission critical equipment GE supplies to customers in Kazakhstan and across Central Asia is maintained at peak performance.”

Alibi Akhmedzhanov, General Director, JSC ZKMK said: “This agreement is good news for oil and gas operators across Kazakhstan and Central Asia who now have unrivalled, localized access to GE’s world-class engineering capabilities. In addition, together with GE, we are pleased to be able to support the local Kazakhstan economy through the development of local skills, training and technical expertise on a sustainable basis.”

GE Oil & Gas will provide ZKMK with the technical training and services necessary to support a world-class, localized services operation. In exchange, ZKMK will invest in the modification of its Uralsk manufacturing facility to ensure that GE Oil & Gas’ installed fleet in the region, which includes over 50 gas turbines and 40 centrifugal compressors, can be maintained at peak performance levels for customers.

The agreement supports the companies’ intention to jointly finalize a gas turbine localization strategy to produce, assemble, supply and service the GE10/2 11-plusMW range of gas turbines in Kazakhstan and the Central Asia region.

GE’s gas turbine and compressor units are vital to infrastructure development projects across Central Asia, including oil and gas production and transportation, refinery and petrochemical industry applications, and fuel gas boosting.

About JSC ZKMK - Zapadno-Kazakhstanskaya Mashinostroitelnaya Kompania

ZKMK is a precision engineering plant operator specializing in highly technological complex parts production, assembly, repair and maintenance for the oil, gas, processing and power industries. ZKMK implements projects of any degree of complexity under the terms of EPC contracting: from design, manufacturing and supply of the required equipment to installation, putting into operation and servicing.

About GE Oil & Gas

GE Oil & Gas (www.ge.com/oilandgas) is a world leader in advanced technology equipment and services for all segments of the oil and gas industry, from drilling and production, LNG, pipelines and storage to industrial power generation, refining and petrochemicals. We also provide pipeline integrity solutions, including inspection and data management. As part of our 'Innovation Now' customer focus and commitment, GE Oil & Gas leverages technological innovation from other GE businesses, such as aviation and healthcare, to continuously improve oil and gas industry performance and productivity. GE Oil & Gas employs more than 12,000 people worldwide and operates in over 100 countries.

About GE

GE is Imagination at Work - a diversified technology, media and financial services company focused on solving some of the world's toughest problems. With products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and industrial products, we serve customers in more than 100 countries and employ more than 320,000 people worldwide. For more information, visit the company’s Web site at www.ge.com.

For additional information, please contact:

Kazakhstan, Russia and Central Asia:
Eugenia Shipova
+7 (985) 111 27 83
eugenia.shipova@mmd.ru

Other locations:
Nigel O’Connor
GE Oil & Gas
+44 (0) 776 611 5135
nigel.o’connor@ge.com