NOV & GE Cooperate to Deliver FPSO Integrated Solutions

We are excited to be announcing another strong step towards more efficient and effective production of FPSO's in our complimentary cooperation agreement between NOV and GE Oil & Gas to deliver fully integrated solutions to the offshore production market.  This new FPSO industrial platform will enable much needed repeatability of packaging and interface and will provide greater value to customers through economies of scale as well as the integration of experience and success for the industry that we know we can deliver together.  This will enhanced designs, technology and industrialized supply chain that for we expect to be the catalyst for improving the life-cycle economics of offshore development for our industry.

Our much anticipated announcement came out today, based on the execution of our agreement to collaborate together. The agreement brings together the complementary product offerings and engineering capabilities from two industry leaders to optimize engineering design and supply comprehensive topside solutions for FPSO projects. 

For many years now we have been building a powerhouse of capabilities in engineering and manufacturing advanced fluids pumping, treatment and processing systems; composite piping systems; cranes and deck machinery; and sophisticated, disconnectable turret mooring systems for FPSOs and related vessels.  Additionally, we have successfully installed and commissioned equipment on hundreds of vessels in dozens of shipyards for the oil and gas drilling industry.  

GE Oil & Gas brings to the table their own engineers and manufacturing strengths in advanced technology solutions for many of the world’s most complex power generation and gas compression projects. Also, with its Subsea Production Systems, they offer a comprehensive range of solutions including subsea trees, manifold & connection systems, and power & processing technology that could fit well in our future solutions.

This also opens a new potential horizon for further inter-company collaboration where it makes sense to both of our businesses. 

The new, combined platform will provide industry-leading topside systems with repeatable deliveries, scale economies and standardized interfaces, which are expected to reduce risk of construction delays and cost overruns for deepwater oil and gas customers.  Additionally, the new platform will incorporate digital solutions, which will optimize performance and provide predictive analytics through the life of the vessels, enabling FPSOs to efficiently adapt to a wider array of operating parameters.

The industrialized manufacturing supply chain, combined with digital solutions and global service and aftermarket capabilities, is expected to maximize life-cycle efficiencies and drive down the cost of offshore oilfield development.  Ultimately that is where our strategies truly align and the outcome can make a significant improvement to the performance of our industry.

Our CEO, Clay Williams is quoted as saying “We can materially improve deepwater production economics by industrializing the supply chain and standardizing complex interfaces between our complementary topside equipment,” He went on to say “For the past year we have quietly explored this new and better way to make floating production vessels and are excited about how this collaboration will change the industry and improve the economics of deepwater production development.” Lorenzo Simonelli, President & CEO, GE Oil & Gas also commented that “With this agreement, we are bringing together capabilities and expertise from GE Oil & Gas and NOV to better serve our customers and overcome oil and gas offshore industry challenges,” and added that “Digital solutions will add even more value to the agreement. Digitization has become not only a competitive differentiator but increasingly, a necessity to help our customers make their businesses stronger long-term.”

It is important to note that NOV and GE Oil & Gas will remain independent suppliers of equipment, services and systems and this plan to collaborate will take place where a clear integrated value can be offered to the industry.  Exciting times!