(EnergyAsia, July 19 2012, Thursday) — US conglomerate GE said it and Russia’s oil and gas giant Rosneft have signed a memorandum of understanding (MOU) that lays the foundation for the two companies to jointly evaluate and develop oil and gas exploration and production opportunities in the Russian Federation.

Signed by John Krenicki, GE vice chairman and president and CEO of GE Energy, and Igor Sechin, president of Rosneft, the agreement will focus on leveraging GE Oil & Gas technologies to help Rosneft improve efficiency and yields in its oil and gas exploration and recovery operations, and jointly developing, manufacturing and selling equipment for use in Russia’s oil and gas industry.

The two companies will form a joint working group to identify opportunities for providing equipment for Arctic offshore field development, gas monetisation technologies and enhanced oil recovery and difficult reserve development.

Mr Krenicki said: “The MOU underscores GE’s interest in discussing, jointly with the Russian government and Russian oil and gas companies, the technology needs of the Russian oil and gas industry today and in the future, identifying key areas of cooperation to create value for the Russian Federation and GE.

“GE Oil & Gas has developed a comprehensive portfolio that we believe can meet the challenges of the unique Russian oil and gas environment.”

With a history of partnering with major oil and gas companies to provide package solutions, GE Oil & Gas has developed technology for increasing gas monetisation and recovery efficiency as well as developing fields in the most extreme conditions.

GE Oil & Gas, headquartered in Florence, Italy, employs 33,000 people and has operations in 130 countries worldwide, generating more than US$14 billion of annual revenue. GE sells advanced technology equipment and services for all segments of the offshore and onshore oil and gas industry, from subsea, drilling and production, LNG, pipelines and storage to industrial power generation, refining and petrochemicals.