General Electric Company : GE Oil & Gas Technology to Promote Flare Gas Utilization

30 January 2012

GE Oil & Gas Technology to Promote Flare Gas Utilization

GE Technology at the Verkhnechonsk Oil and Gas Field in Siberia Enables Increasing the Associated Oil Gas Utilization Volume

FLORENCE, ITALY-January 30, 2012-GE Oil & Gas (NYSE: GE) will supply an associated gas utilization technology to TNK-BP's Verkhnechonsk oil and gas field in Eastern Siberia. The project calls for gas re-injection into an underground storage for further reuse. TNK-BP is Russia's third largest oil producer and among the 10 largest private oil companies in the world.

Under that project, GE will provide a PGT25 gas turbine and three compressors, which will enable TNK-BP to increase the associated oil gas utilization volume in line with the current legislation that stipulates a utilization level of at least 95 percent.

According to Denis Pyalov, regional manager for GE Oil & Gas, "This is an excellent example of how GE technology can reduce emissions and mitigate impact on the environment."

Alexander Sleptsov, director of TNK-BP's Department for Gas Projects said, "The project is implemented within the framework of TNK-BP's program for increasing the useful utilization level of associated petroleum gas to 95 percent. Part of the associated gas from the crude oil separation process will be used within the facility as fuel gas, while the remaining gas will be re-injected into our underground storage. We also assume that in a few years, once Gazprom organizes gas supplies from the Chayandino field, we will be able to supply gas to customers."

The Verkhnechonsk project underscores a growing trend in Russia to reuse gas that otherwise would be flared into the atmosphere or wasted. Not only do these projects support the government's push to reduce flare gas, they also enable oil and gas companies to waste less gas, sell more and reduce the environmental impact of their activities. The new compression train is scheduled to enter commercial service in the summer of 2013.

GE has been operating in Russia since the early 20th century and today has 2,500 employees in the country. GE is represented across the country in multiple industries including healthcare, transportation, aviation, electric power, oil and gas, water treatment, financial services, media, appliances, lighting and intelligent platforms.

Since March of 2008, GE's MS5002E gas turbines have been manufactured, tested and sold in Russia as LADOGA 32 units, under a technology transfer and localization licensing agreement between GE and REP Holding. In 2010, GE opened an Energy Technology Center located in Russia's Kaluga Region, which is manufacturing and servicing advanced power generation equipment throughout the region. In September of last year, GE signed a joint venture with INTER RAO UES and UEC to localize production of GE's 6FA heavy duty gas turbines in Rybinsk, Russia.

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