GE Oil & Gas, a division of General Electric Company (GE - Free Report) , received a 16-year service contract extension worth $333 million for Sakhalin-2, a liquefied natural gas (LNG) plant in sub-arctic Russia. The service agreement includes four GE Frame 7EA gas turbines, which drive process trains for the Sakhalin LNG plant, and five GE Frame 5 gas turbines used for electricity production at the plant.
Additionally, General Electric also signed a memorandum of understanding (MOU) with the Sakhalin government to develop power projects and meet the future energy needs of Sakhalin Island. The MOU includes aeroderivative gas turbines, gas engines, coal gasification and wind power.
Sakhalin Energy operates the project under a production sharing agreement with the Russian Federation. Amid the most challenging situations, General Electric aims to deliver technological innovation and services for the Sakhalin region. The project will also generate employment opportunities for the local people and help them in enhancing their skills.
The extension of the contract agreement for maintenance and services will further lead to more production availability. In the last reported quarter, Oil & Gas segment of General Electric recorded the highest revenue growth (up 11%).
General Electric is one of the most diversified technology and financial service corporations in the world, competing with industry big wigs such as Crane Co (CR - Free Report) and Macquarie Infrastructure Company LLC (MIC - Free Report) . Its segments include Power & Water, Oil & Gas, Energy Management, Aviation, Healthcare, Transportation, Home & Business Solutions, and GE Capital. GE Oil & Gas provides highly developed technology equipment and services to onshore, offshore and sub-sea oil & gas projects.
General Electric currently has a Zacks Rank #3 (Hold). One of its competitors, Tyco International Ltd carries a Zacks Rank #2 (Buy).