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Not Four, Rather 16 More Years

GE Oil & Gas gets service contract extension for Sakhalin-2

Posted on March 5, 2013

GE Oil & Gas has received a 16-year, US$333 million service contract extension for Sakhalin-2, an integrated oil and gas project that operates in the subarctic environment of Sakhalin Island in the Russian Far East. The current agreement was scheduled to end in 2016, GE said.

GE also signed a memorandum of understanding (MOU) with the Sakhalin provincial government to work together in developing power generation projects to meet the future energy needs of Sakhalin Island. The MOU covers a wide range of GE technology options, including aeroderivative gas turbines, gas engines, coal gasification and wind power.

The service contract extension covers four GE Frame 7EA gas turbines that drive the process trains for Sakhalin’s liquefied natural gas (LNG) plant and five GE Frame 5 gas turbines that are used for electricity production at the site.

Sakhalin Energy, a partnership that draws upon global oil and LNG expertise and experience, operates the project under a production sharing agreement with the Russian Federation. The GE service agreement includes planned and unplanned outages, parts and repairs, an availability guarantee, remote monitoring and diagnostics and an on-site GE team of technicians. The agreement will be supported by GE’s technology and services center in the Kaluga region of Russia.