GE Oil & Gas and Al Shaheen Energy Services Sign Strategic Partnership Agreements

GE Oil & Gas and Al Shaheen Energy Services, a wholly owned subsidiary of Qatar Petroleum established to develop partnerships in the oil and gas and energy industries, have signed two partnership agreements, consolidating PII Pipeline Solutions’ presence in Qatar and the Middle East, and establishing a JV for aftermarket services of Turbomachinery equipment in Qatar.

50% investment in PII Pipeline Solutions

Under the first agreement Al Shaheen Energy Services becomes a 50% strategic JV partner in GE Oil & Gas’ PII Pipeline Solutions business with immediate effect. GE Oil & Gas will maintain operational control of the business. The company name will be PII Pipeline Solutions (an Al Shaheen/GE Oil & Gas Company). Its logo, inspection tool names, services and software will remain the same. Together, GE and Al Shaheen will establish a dedicated Integrity and Inspection center in Qatar, expected to be opened in 2010, to support pipeline solutions in the Middle East.

John Bucci, General Manager, GE Oil & Gas, PII Pipeline Solutions said: "Al Shaheen Energy Services, as part of Qatar Petroleum, is an excellent, strategic partner for PII to help us continue to grow and meet our long-term objectives. The partnership agreement will benefit our entire global customer base through the leveraging of additional strategic resources and improved access to the Middle East. This is great news for pipeline operators, our employees and the Middle East region, evidencing the strength and value of the PII franchise.”

Joint Venture for GE Oil & Gas Global Services in Qatar

GE Oil & Gas and Al Shaheen have also signed a 50:50 joint venture agreement to perform aftermarket services for the GE Oil & Gas installed fleet in Qatar.

The Al Shaheen/GE Services Company, which includes GE’s existing Services Center facilities in Qatar, will provide an enlarged range of turbine, compressor and related auxiliary equipment services. The JV will help Qatar achieve increased oil and gas capacity by providing the most advanced technologies for the inspection, maintenance and repair needs of the local oil and gas industry. The broader application expertise available will include LNG and pipeline, gasification and storage, and refinery and petrochemicals. The Qatar Services Center will promote Qatar’s growth by fostering technology transfer and the development of local talent.

Jeff Nagel, Vice President Global Services, GE Oil & Gas said: "GE has a long association with Qatar Petroleum, and formalizing a joint venture relationship with Al Shaheen Energy Services is a significant step forward in this important alliance. We look forward to working closely with Al Shaheen to promote the growth and success of this venture.”

Signing the agreements for Al Shaheen Energy Services, Ahmad Saif Al Sulaiti, Chairman of Al Shaheen Energy Services, said: "These deals mark an important step, both in our own business development, and in boosting employment and skills in the region. PII Pipeline Solutions is a strong brand, with an excellent track record, outstanding engineering and commercial teams and best-in-class technology. Having collaborated for several years, we are delighted to become involved with such an exciting business. We believe we can make a valuable contribution to help PII develop its future direction and continue to deliver technology innovation for pipeline safety and inspection. Additionally, the joint Qatar Services Center investment with GE will be of immense benefit to helping Qatar and the Middle East achieve increased oil and gas capacity, as well as nurturing local engineering knowledge and talent.”

Caution Concerning Forward-Looking Statements

This document contains "forward-looking statements”- that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance and financial condition, and often contain words such as "expect,” "anticipate,” "intend,” "plan,” believe,” "seek,” "see,” or "will.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties that could cause our actual results to be materially different than those expressed in our forward-looking statements include: the severity and duration of current economic and financial conditions, including volatility in interest and exchange rates, commodity and equity prices and the value of financial assets; the impact of U.S. and foreign government programs to restore liquidity and stimulate national and global economies; the impact of conditions in the financial and credit markets on the availability and cost of GE’s funding and on our ability to reduce GE’s asset levels and commercial paper exposure as planned; the impact of conditions in the housing market and unemployment rates on the level of commercial and consumer credit defaults; our ability to maintain our current credit rating and the impact on our funding costs and competitive position if we do not do so; the soundness of other financial institutions with which GE does business; the adequacy of our cash flow and earnings and other conditions which may affect our ability to maintain our quarterly dividend at the current level; the level of demand and financial performance of the major industries we serve, including, without limitation, air and rail transportation, energy generation, network television, real estate and healthcare; the impact of regulation and regulatory, investigative and legal proceedings and legal compliance risks; strategic actions, including acquisitions and dispositions and our success in integrating acquired businesses; and numerous other matters of national, regional and global scale, including those of a political, economic, business and competitive nature. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.

About PII Pipeline Solutions PII Pipeline Solutions provides inspection and integrity services to help secure safe pipeline operation on and offshore, maintaining cost-efficient compliance to regulations and maximizing throughput for operators. The business has over 240 inspection tools in its portfolio, with over 630,000 kms of pipeline inspected worldwide. The business employees over 700 people and operates from 19 sites globally, including four key technology and operating centers in Cramlington in the U.K., Calgary in Canada, Kansas in the U.S. and Stutensee in Germany.

About GE Oil & Gas GE Oil & Gas (www.ge.com/oilandgas) 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 100 countries.