GE and OJSC Rosneft signed a memorandum of understanding (MOU) that lays the foundation for the two companies to jointly evaluate and develop commercial opportunities in oil and gas exploration and production in the Russian federation.

The MOU was signed by John Krenicki, vice chairman, president and CEO of GE Energy; and Igor Sechin, president of Rosneft. The agreement calls for a strategic, cooperative relationship that would leverage GE Oil & Gas technologies to help Rosneft improve efficiency and yields in its oil and gas exploration and recovery operations; and explore opportunities to jointly develop, manufacture and sell equipment for use in Russia's oil and gas industry.

"The MOU underscores GE's interest in discussing, jointly with the Russian government and Russian oil and gas companies, the technology needs of the Russian oil and gas industry today and in the future, identifying key areas of cooperation to create value for the Russian federation and GE," said Krenicki. "GE Oil & Gas has developed a comprehensive portfolio that we believe can meet the challenges of the unique Russian oil and gas environment."

Under the terms of the MOU, GE and Rosneft will form a joint working group to identify the range of potential opportunities for short and long-term opportunities, including equipment for Arctic offshore field development, gas monetization technologies and enhanced oil recovery and difficult reserve development.