GE's new Subsea Compressor Selected for Ormen Lange Gas Firld Pilot Project


STAVANGER, NORWAY - August 22, 2006 - Technology jointly developed by GE Oil & Gas and Aker Kvaerner has been selected for a pilot program in Norway's Ormen Lange natural gas field that will be the first subsea compression project of its kind in the world, GE announced today at the 2006 Offshore Northern Seas Conference.

The contract for the pilot project was awarded to Aker Kvaerner by Norsk Hydro, one of the owners of the natural gas field, the largest under development on the Norwegian continental shelf.

Working with Aker Kvaerner, GE Oil & Gas has completed the conceptual design of a 12-megawatt subsea compressor, the largest ever developed for subsea applications, and is set to begin construction of the machine to be tested in the pilot project.
The aim of the pilot project is to evaluate whether a subsea compression station, at approximately 900 meters of water depth, is a viable alternative to an offshore platform. In the past, it has not been profitable to exploit many natural gas subsea fields, particularly those in depths of 500 meters or more, largely due to the cost of conventional offshore platforms.

"This project represents a major milestone in the development of subsea compression
technology," said Libero Mele, Regional General Manager for Central and Northern Europe, GE Oil & Gas. "If the project produces the expected results, the Ormen Lange partners will have a cost-effective alternative to the originally planned offshore platform. This technology then could be applied to other subsea field developments, eliminating the need for offshore platforms."

Subject to the Ormen Lange partners' final approval, Aker Kvaerner's subsea compression station pilot project will undergo controlled endurance tests from 2009 to 2011 at a gas treatment facility in Nyhamna, Norway.

Since the early 1990s, GE Oil and Gas has been working to develop a robust subsea compression system, ranging from the testing of the first 850-kilowatt subsea compressor unit in 1992 to today's generation of advanced high-speed, oil-free subsea compressors designed for the economic recovery of natural gas from deepwater fields. A 2.5-megawatt conceptual design, called the Blue-C* Subsea Centrifugal Compressor, was unveiled at the Offshore Northern Seas Conference in 2002. The new high-speed, oil-free, 12-megawatt subsea compressor has evolved from that technology.

To address the constraints of a subsea application, the new design has been focused on the optimization of the compression train, featuring a vertical and compact configuration to minimize the footprint and to facilitate machine operation with good drainage of possible liquid parts.

Because reliability of the compression train is a key requirement for subsea applications, the equipment was designed to minimize the number of critical parts.

"Technology developments such as the new subsea compressor will lead to a significant increase in seabed oil field exploitation," said Mele. "Developing and implementing reliable subsea technology is a major challenge, but it will produce huge benefits in the oil and gas industry in the years ahead."

The new subsea compressor module, an extremely compact solution, is equipped with active magnetic bearings and includes a high-speed electric motor directly coupled with a centrifugal compressor in a vertical configuration.

The Ormen Lange subsea compressor module is a turnkey system designed to be installed at a water depth of 850 to 1000 meters and at a distance of 120 kilometers from the Nyhamna onshore terminal.

GE's partner in the development effort, Aker Kvaerner is a leading global provider of engineering and construction services, technology products and integrated solutions. The businesses within the company encompass several industries, including oil and gas, refining and chemicals, mining and metals, pharmaceuticals and biotechnology, power generation and pulp and paper.

About GE's Oil & Gas business
GE's Oil & Gas business is a world leader in advanced technology turbomachinery products and services, with engineering and manufacturing centers of excellence throughout Europe and the United States. Based in Florence, Italy, the company offers complete solutions for production, LNG, transportation, storage, refineries, petrochemicals and distribution systems, as well as pipeline integrity solutions including analysis and pipeline asset management.

For more information, contact:
Gabriele Peri Ken Darling or Howard Masto
GE Masto Public Relations
Oil & Gas +1 518 786 6488
+39 055 423 8280 kenneth.darling@ge.com
gabriele.peri@ge.com howard.masto@ge.com

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