General Electric Company (NYSE:GE) Oil & Gas division signed a landmark long-term, multi-million-dollar contract with Petroleum Development Oman for the provision of Progressive Cavity Pump equipment (PCP) and related services commencing in the third quarter of 2016.
This is aligned with PDO’s ‘In Country Value’ initiative and marks the first contract awarded by PDO to GE, for providing PCP equipment and services.
PDO’s ‘In Country Value’ strategy aims at promoting localized sourcing, developing Local Community Contractors (LCCs) and strengthening Omani talent development through training programs. GE Oil & Gas will sub-contract services to LCCs that will also be trained on the various aspects of PCP services. The engagement of the LCCs and sub-contracting of work to them is crucial to driving local talent development and boosting south Oman’s local economy.
A PDO spokesperson said: “The award of the integrated PCP contract to GE for the Nimr fields synergizes and aligns with the integrated RRP contract for the Nimr fields previously awarded to GE. ‘In Country Value’ was an important feature of the negotiations and this contract is further evidence of our commitment to secure long-term sustainable economic benefits for the Sultanate.”
Rami Qasem, President & CEO, GE Oil & Gas for Middle East, North Africa and Turkey, said: “The contract builds on our long-term partnership with PDO and underlines our commitment to investing in Oman and supporting PDO to achieve their long-term goals. The provision of advanced equipment and services will help in meeting and exceeding the average run-life of the PCP equipment, a critical component in PDO’s production operations.”
As part of the deal, GE Oil & Gas has joined hand with its local partner Edgo to provide a wide range of specialized equipment and ensure preventive and corrective maintenance for a number of inherited PCP systems in addition to supervising the use of these systems in well interventions. GE Oil & Gas will also provide technical training to the PDO team.
GE Oil & Gas supports its partners in Oman with a wide range of products and services including Artificial Lift products such as Rod Lift Systems, Automation, Electrical Submersible Pumps, Progressing Cavity Pumps, Surface Pumping Systems, Zenith Systems, Power 2 Lift, Pressure Control systems (PC) and Turbo Machinery Services (TMS), among others.
With an active presence in Oman since 1975 GE is a key partner in supporting the Sultanate’s energy production. GE currently has 70% of the RRP scope of work with PDO in the Nimr area. GE ESP technology is deployed in 230 of PDO’s wells to support production. GE is also powering the three LNG trains at Oman LNG’s Qalhat complex with six critical gas turbines driving the trains and six gas turbines generating power.
GE has also rolled out dedicated training programs for Omani professionals at the GE Oil & Gas University in Florence, a testament to the abiding commitment to support Omanization and human capital development. (Original Source)
Shares of General Electric closed last Friday at $29.89, down $0.15 or -0.50%. GE has a 1-year high of $33 and a 1-year low of $24.26. The stock’s 50-day moving average is $30.60 and its 200-day moving average is $30.50.
On the ratings front, GE stock has been the subject of a number of recent research reports. In a report issued on September 8, William Blair analyst Nicholas Heymann reiterated a Buy rating on GE, with a price target of $38, which represents a potential upside of 27% from where the stock is currently trading. Separately, on September 7, Bernstein Research’s Steven Winoker maintained a Hold rating on the stock .
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Nicholas Heymann and Steven Winoker have a total average return of 2.0% and 9.2% respectively. Heymann has a success rate of 57% and is ranked #1973 out of 4183 analysts, while Winoker has a success rate of 72% and is ranked #649.
Overall, 2 research analysts have rated the stock with a Sell rating, 4 research analysts have assigned a Hold rating and 5 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $30.50 which is 2.0% above where the stock closed last Friday.