General Electric signs deal with Rosneft to develop Zvezda Shipyard in Vladivostok through 2019

February 3, 2016

Rosneft and American Corporation General Electric (GE) has signed a long-term development of strategic cooperation, including a plan for the construction of joint ventures for the production of marine, oil and gas and electrical equipment.

According to citing the press release of the Russian oil and gas companies, Rosneft and GE will work together in the framework of the development of the shipbuilding projects of the shipyard “Zvezda” in Vladivostok. The partners plan to build a plant for the production of propeller-steering columns for ships, as well as enterprises manufacturing electrical marine equipment.

The document also envisages cooperation in the sphere of production of liquefied natural gas (LNG). GE and the company “ITERA” (“a daughter” “Rosneft”) will continue to work on a project to create the first low-tonnage mini-LNG plant in Russia on the basis of “Bratskecogaz”.

In addition, “Rosneft” has signed with GE and the Russian “Transmashholding” agreement on the localization of production of marine engines GE model V250 in Penza and supplies them to the address of the shipbuilding complex “Zvezda”. Delivery of the first engines is expected by 2018. According to GE, the parties will invest USD 70 million in the project.

“The implementation of the program, signed today with one of the world’s technological leaders, means moving our cooperation to a new level of industrial cooperation that is possible, and on mutually beneficial terms to meet the huge demand, which forms the Russian energy sector, with the prospect of joint entry into global markets”, — commented on the signing of the document the head of “Rosneft” Igor Sechin. CEO of GE Jeff Immelt added that he sees opportunities for long-term business development of the Corporation in Russia.

The shipyard “Zvezda” will become the first Russian large-tonnage shipbuilding shipyard with processing capacity of 330 thousand tons of metal per year. Construction is slated for completion in 2019.