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GE Oil & Gas Awarded $100M Contract by Petrofac for El Merk Project in Algeria - New $36M investment ALGESCO Boufarik facility to provide services support
GE Oil & Gas Awarded $100M Contract by Petrofac for El Merk Project in Algeria


NewswireToday - /newswire/ - Florence, Italy, 2010/04/18 - New $36M investment ALGESCO Boufarik facility to provide services support. NYSE: GE

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In a contract valued at approximately US$100M, GE Oil & Gas will supply Petrofac, a leading international provider of services to many of the world’s largest oil and gas companies, with turbo compression equipment for Groupement Berkine’s El Merk central processing facility (CPF) in the Berkine Basin of Algeria.

Claudi Santiago, president and CEO, GE Oil & Gas said: “Through this contract, we are strengthening our relationship with Petrofac, one of the leading international oil and gas facilities service providers. The contract provides the framework for the two companies to work together with a high degree of efficiency, streamlining our work processes and creating a platform for continuous communication. In addition, we are delighted that ALGESCO’s new Service Center in Boufarik will provide advanced services support.”

Groupement Berkine’s El Merk project will feature GE’s BCL centrifugal compressors, which have unparalleled industry experience for handling high-pressure sour gas reinjection. This technology set an industry milestone by achieving 820 bar pressure during the testing of turbo compression trains for the Kashagan oil field in the North Caspian Sea.

GE’s scope of supply for the El Merk project will include three turbo-compressors for gas injection and two turbo-compressors for residue gas service, along with three motor-compressors for gas booster service and three for associated gas services. The turbo compressors will be manufactured at GE Oil & Gas facilities in Florence, Italy, and will start to be shipped to the project site in September 2010, while the motor-compressors will be built in Le Creusot, France, and shipped to Algeria in September 2010. When the new CPF plant enters service, in phases starting late 2011, it will have a capacity of 98,000 barrels per day of crude oil, 28,800 barrels per day of condensate and 31,000 barrels per day of liquefied petroleum gas.

ALGESCO’s New $36M Investment Boufarik Service Center to Support El Merk
ALGESCO, a joint venture between Sonatrach, Sonelgaz and GE, will provide local support and maintenance for the El Merk CPF plant, as well as all other GE Oil & Gas key facilities and power stations within Algeria, from its new $36M investment Boufarik service center. Building on more than 45 years of GE experience in Algeria, ALGESCO provides a broad range of turbine, compressor and related auxiliary equipment services for customers across Algeria.

Further expanding its presence in the region, in the coming months ALGESCO will open a new service center in Boufarik. Encompassing approximately 18,300 square meters, it is the largest GE Oil & Gas service center in the world.

As a center of excellence for turbomachinery services, the center provides a wide range of advanced technologies to help Algeria increase its oil and gas capacity. The new Boufarik service center is at the completion phase and a formal inauguration/ribbon-cutting ceremony will take place in 3Q 2010.

About Groupement Berkine
Groupement Berkine, a joint operating venture between Anadarko Petroleum Corporation and Sonatrach, the Algerian National Oil Company, was formed to co-develop and produce a number of oil fields in the deserts of Algeria. From its Hassi Berkine site, Groupement Berkine produces 250,000 barrels of oil per day, equating to almost one quarter of Algeria's daily oil production.

About Petrofac
Petrofac’s customers include many of the world’s leading integrated, independent and national oil &gas companies. Through its business offering Petrofac ( designs and builds oil & gas facilities, operates, maintains and manages facilities and trains personnel; enhances production; and, where it can leverage its service capability, develops and co-invests in upstream and infrastructure projects. Petrofac’s range of services meets its customers’ needs across the full life cycle of oil & gas assets.

About GE Oil & Gas
GE Oil & Gas ( 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 (NYSE: GE) is a diversified infrastructure, finance and media company taking on the world’s toughest challenges. From aircraft engines and power generation to financial services, health care solutions, and television programming, GE ( operates in more than 100 countries and employs about 300,000 people worldwide.

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Nigel O'Connor, GE Oil & Gas
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GE Oil & Gas Awarded $100M Contract by Petrofac for El Merk Project in Algeria

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