GE Oil & Gas signs groundbreaking contractual service agreement with PT Donggi-Senoro LNG

Source: GE Oil & Gas

The agreement, worth more than EUR 102 million, is a watershed moment for the oil and gas sector, signalling greater future integration of service maintenance and industrial internet application.

GE Oil & Gas announced the signature of a Contractual Service Agreement with the Asian energy company PT Donggi Senoro LNG (“DSLNG”). The deal will see GE Oil & Gas provide full package services and also monitor non-GE equipment supplied by other Original Equipment Manufacturers (OEMs), offering a stretched reliability target embedded in the contract. For the first time, GE Oil & Gas guarantees performance even on non-GE equipment including electric motors and centrifugal compressors.

The landmark long term deal, worth more than a EUR 102 million, is a milestone for the company, because under the terms of the agreement, GE will act as a single contractual supplier. For the first time, this performance driven contract will also include a bonus scheme linked to real customer production, to reinforce the partnership concept that CSA contracts offer to the customer.

GE will provide full package services, including planned (spare parts, repairs, supervision and manpower) and unplanned maintenance. Full Reliability Max Predictivity Solution package for the facility will be also provided to the plant, which includes elements such as a dedicated diagnostic engineer, monitoring and diagnostics, as well as more advanced outcome-based offerings designed to optimize plant-wide asset performance management and maintenance operations. GE will leverage its team of software engineers to build a bespoke platform to interpret data collected from machines manufactured by other OEMs.

An extended GE high level skilled resident team will also be permanently based at the site of the plant in Banggai Regency, in the Province of Central Sulawesi in Indonesia, to guarantee constant coverage and outstanding performance results.

The commercial and technical offering to PT DonggiSenoro LNG has been conceived and developed through highly specialized site assessments prior to the plant construction phase. This has ensured that the plant layout best fits the tailored maintenance philosophy GE is offering to maximize customer production.

GE contract execution will be carried out alongside with strong local partnership building, with a localization plan to be further developed during the whole contract life.  

The agreement is a watershed moment for the oil and gas sector, signalling greater future integration of service maintenance and industrial internet application. Operators are looking for more optimization in their maintenance agreements, asking companies to provide insight and information not only for their specific manufactured equipment, but also widening the scope to cover the balance of the plant.

GE’s cutting-edge Full Reliability Max Predictivity Solution package, which is being brought to the plant, is designed to simplify and optimise the stream of information for diagnostics engineers. Moreover, it will also provide Donggi Senoro with access to a web-based service, allowing the company to monitor how its machines are performing in real time and represents a further evolution of its Reliability Max offering.

Capable of producing 2 million tons of LNG per annum, Donggi Senoro’s LNG plant was first constructed in 2011.

Most of the LNG exported from the facility, which is fitted with GE equipment originally manufactured by GE Oil & Gas in Florence goes to Japan and Korea.

Earlier this month, GE Oil & Gas Indonesia also signed a cooperation agreement with PT Pertamina Drilling Services to jointly develop a more comprehensive and efficient drilling equipment and solutions for onshore and offshore applications;  and with PT Elnusa to jointly develop market opportunities for GE’s Artificial Lift business.

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