General Electric Company (NYSE:GE) Oil & Gas has signed a first-of-its-kind partnership agreement with the Iraqi Ministry of Oil that aims to strengthen the performance of the nation’s energy sector by providing advanced equipment, technology upgrades, maintenance of the Ministry’s fleet and ensuring knowledge transfer, skills development and local jobs.
The agreement aims to enhance the operational efficiency of all assets of the Ministry and promote the sustainable growth of the nation’s economy. It also envisages the setting up of the country’s first Monitoring & Diagnostics Center that will leverage GE’s Digital solutions. The 24/7 center will take Big Data from sensors embedded in the Ministry’s equipment and with advanced software analytics will offer web-based solutions that enable predictive maintenance, reduced downtime and overall improved operational efficiency
GE and Iraq Ministry of Oil have agreed to partner on an end-to-end solution to reduce gas flaring in Iraq oil fields and use it for power generation. This solution could translate into more than 200 Megawatts per site and recovery of several thousand barrels per day of liquefied petroleum gas.
In addition, GE Oil & Gas will partner with the Ministry of Oil to develop financing structures for its projects by tapping into its international knowledge and expertise in supporting major Oil & Gas projects around the world.
Underlining the commitment of GE Oil & Gas to localization, the agreement will work to create additional jobs for Iraqis, and build national human capital through advanced technical training and knowledge transfer. This builds on GE Oil & Gas’ existing capabilities in terms of people employed, shops, repair and services. Underlining its commitment to job creation and localization, GE has hired more than 200 Iraqi employees in the country over the past five years.
The partnership agreement was signed at the offices of the Iraqi Ministry of Oil at a ceremony attended by Fayadh Hassan Nima, Deputy Minister of Oil; Rami Qasem, President & CEO, GE Oil & Gas, Middle East, North Africa & Turkey; Aziz Koleilat, President & CEO, GE Iraq as well as other senior dignitaries and officials.
Fayadh Hassan Nima said: “The oil and gas sector serves as the backbone of the national economy and we are committed to strengthening it by leveraging the latest technologies. The Framework Agreement with GE Oil & Gas is planned to bring transformational growth to the industry by enhancing the operational efficiency of all our assets and boosting productivity.
“A top priority for the Ministry is to create new jobs for Iraqis in the energy sector, with the agreement working to build the skills of our talented professionals and youth talents. The recommendations of the agreement will have long-run benefits for the economy and increase the competitiveness of the oil and gas sector.”
Rami Qasem said: “The new GE-Iraq strategic plan further strengthens our long-term partnerships with the Ministry of Oil and with the country and builds on the great capabilities we have built-up in-country over many years. We are excited that the projects to be undertaken will support the national economy and the people of Iraq by enhancing skills within the energy sector, which contributes significantly to the national GDP.”
Qasem added: “In addition to scaling up the efficiency and productivity of the existing assets of the Ministry, the agreement also marks the first application of our advanced Digital solutions, flare gas solutions and financing. These are all landmark initiatives we are proud to drive forward with our Iraqi partners. The agreement is a strong demonstration of our focus on creating new jobs for Iraqis and to accelerate localization initiatives.”
Over the course of the agreement, GE Oil & Gas will work with the Iraq Ministry of Oil to introduce its latest technologies and solutions to upgrade the Ministry’s assets that will contribute to the reliability and efficiency of the energy sector.
GE has recently signed a ‘Power Up Plan’ with the Iraq Ministry of Electricity for critical electricity generation and maintenance projects throughout the country. The plan comprises a set of technological solutions, and upgrade projects to be carried out to ensure essential incremental power is added to the national grid in time for the summer period.
With three offices in Iraq – in Baghdad, Erbil and the southern oil & gas hub of Basra – GE continues to deliver its latest technology and expertise to local customers. GE has over 40 years of presence in Iraq, and helps support the country’s infrastructure needs in power generation, oil & gas, water processing, aviation and healthcare. (Original Source)
Shares of General Electric are currently trading at $30.60, down $0.16 or -0.50%. GE has a 1-year high of $32.05 and a 1-year low of $19.37. The stock’s 50-day moving average is $30.89 and its 200-day moving average is $29.59.
On the ratings front, General Electric has been the subject of a number of recent research reports. In a report released today, RBC analyst Deane Dray reiterated a Buy rating on GE, with a price target of $35, which implies an upside of 13.6% from current levels. Separately, on April 15, Deutsche Bank’s John G. Inch maintained a Hold rating on the stock and has a price target of $28.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Deane Dray and John G. Inch have a total average return of 3.5% and 12.6% respectively. Dray has a success rate of 65.6% and is ranked #1282 out of 3828 analysts, while Inch has a success rate of 76.5% and is ranked #422.
The street is mostly Neutral on GE stock. Out of 7 analysts who cover the stock, 4 suggest a Hold rating and 3 recommend to Buy the stock. The 12-month average price target assigned to the stock is $32.00, which represents a slight upside potential from current levels.