GE Oil & Gas Wins $70 Million StatoilHydro Contract, Heralding First Global Deployment of Subsea Controls System Powered by the VetcoGray SemStar5

HOUSTON--25 June 2009-- GE Oil & Gas, a world leading company in oil and gas advanced technology equipment and services, has been awarded a contract worth more than $70 million by StatoilHydro to upgrade a suite of subsea control systems for StatoilHydro's Tordis Vigdis Controls Modification (TVCM) project. The solution will incorporate GE's award-winning next-generation subsea electronics module-the VetcoGray SemStar5.

The TVCM project will be the first globally to deploy the VetcoGray SemStar5 subsea electronics module and has the key objectives of higher subsea reliability, extended service life and improved environmental monitoring. The award-winning next-generation VetcoGray SemStar5 subsea electronics modules are being developed and manufactured at GE Oil & Gas' Nailsea facilities in Bristol, U.K., along with the VetcoGray ModPod subsea control modules, and will be shipped to Norway for installation offshore in 2010 and 2011.

The TVCM project will further benefit from the newly upgraded GE Oil & Gas test and assembly facilities at Dusavik, Stavanger, Norway with the development of intervention tooling mainly being carried out from the Dusavik site.

Manuel Terranova, senior vice president, Subsea Product Platform, GE Oil & Gas said, "We recognize the importance of this new technology developed for StatoilHydro as a breakthrough concept for brownfield enhancements and see great leverage in applying the concept further worldwide. TVCM is an ideal opportunity to launch our VetcoGray SemStar5 subsea electronics module, which offers our customers an ultra-reliable, leading edge and fully structured product. We are delighted to be working with StatoilHydro on this project and at the opportunity to jointly showcase new subsea expertise."

The scope of the contract will be executed under the Subsea Production Systems (SPS) frame agreement previously awarded to GE Oil & Gas by StatoilHydro in autumn 2007.

StatoilHydro's Tordis and Vigdis oilfields are located in the North Sea, west of Norway on about 200m water depth.

GE Oil & Gas' VetcoGray SemStar5 is a fifth generation Subsea Electronics Module for use in subsea production control systems. This innovative key component offers new levels of open architecture IP-enabled communication capabilities through the application of an advanced modular design to meet industry demands for standardization and expandability, while providing the infrastructure to support the higher bandwidth requirements of modern instrumentation and simultaneously offering ultra reliability. Enhanced reliability is achieved with thermal management and modeling integral to the design, on-board diagnostics and fault tolerant I/O. The robust mechanical construction will meet and exceed shock, vibration and temperature-cycle requirements of ISO 13628-6 2006. This fifth generation module draws on VetcoGray's proven technologies from more than 25 years of subsea electronics experience and over a century in electronics and communications.

GE Oil & Gas was awarded a coveted "Spotlight on New Technology Award" at the May 2009 Offshore Technology Conference for its next generation subsea electronics module, the VetcoGray SemStar5. The award recognizes new and innovative technologies significantly impacting offshore exploration and production sectors and is judged by an expert panel on five criteria: the technology should be new, innovative, proven, used in a broad range of applications and have a significant impact on the industry.

StatoilHydro Vigdis and Tordis oil fields

The Vigdis oil field lies in block 34/7 in the Tampen area of the Norwegian North Sea and came on stream in 1997. In addition to the main structure, this field comprises the Borg North-West and Vigdis East formations. These began producing in 2003 and 2004 respectively. Vigdis has been developed with subsea installations tied back to the Snorre A platform seven kilometers away for processing. Gas separated from the main Vigdis structure is injected into the Snorre field, while gas from Borg North-West and Vigdis East is piped from Snorre A via the Statpipe/Norpipe system. Stabilized oil is transported by pipeline to Gullfaks A for storage and export.

The Tordis oil field lies in block 34/7 in the Tampen area of the Norwegian North Sea and came on stream in 1994. In addition to the main Tordis structure, the development embraces the Tordis East (1998), Borg (1999) and Tordis South East (2001) fields. These discoveries have all been developed with subsea installations. Water depth is roughly 200 meters. Water injection is used to maintain pressure in the reservoirs. Oil from Tordis is piped to the Gullfaks C platform 10 kilometers away for processing, storage and export. The former Saga Petroleum Company became operator for license PL 089 when the license was awarded in 1984. Norsk Hydro took over operatorship after acquiring Saga in 1999. Statoil took over operatorship on January 1, 2003 and, from October 1, 2007, operation was assumed by StatoilHydro.

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 70 countries.

About GE

GE is a diversified global infrastructure, finance and media company that is built to meet essential world needs. From energy, water, transportation and heal to access to money and information, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's Web site at GE is Imagination at Work.

For more information contact:
Nigel O'Connor
GE Oil & Gas
t: +44 20 7302 6941
m: +44 7766 115 135
e: nigel.o'

Chau Nguyen
GE Oil & Gas
t: +1 713 458 3629

Ken Darling
Masto Public Relations
t: +1 518 786 6488

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