WASHINGTON, Apr 12, 2010 (BUSINESS WIRE) -- GE Oil & Gas, a world leading provider of advanced-technology equipment and services to the oil and gas industry, has signed a memorandum of understanding (MOU) with the Vietnam National Oil and Gas Group (Petrovietnam), the Government of Vietnam wholly owned company responsible for all oil and gas resources in the country and the third largest oil producer in South East Asia.

The MOU was signed today by Mr. Nguyen Quoc Thap, vice president of Petrovietnam and Mr. Marco Caccavale, North America region, general manager of GE Oil & Gas, in the presence of His Excellency Mr. Nguyen Tan Dung, prime minister of the Socialist Republic of Vietnam during his visit to Washington D.C.

Mr. Nguyen Quoc Thap: "This agreement will accelerate our already successful cooperation with GE Oil & Gas, reinforcing our long-term partnership to benefit the efficient development of oil and gas resources in Vietnam. We are confident that GE Oil & Gas will continue to play an important role in helping Petrovietnam contribute to the national and regional economy."

Mr. Claudi Santiago, president & CEO, GE Oil & Gas said: "We are honored to sign this MOU with Petrovietnam, already a highly valued partner to GE Oil & Gas. Our agreement sets out a clear basis for continued successful cooperation in the coming years. We are dedicated to supporting the continued development of oil and gas resources in Vietnam and are capable of delivering technologically advanced projects of significant scale to meet the growing energy needs of Vietnam and the region".

The MOU outlines the principles and basis of long-term collaboration between GE Oil & Gas and Petrovietnam regarding the supply of advanced oil and gas equipment, services and spare parts to optimize the total life-cycle value of key oil and gas projects.

Specifically, the signed MOU creates a framework to improve future transactions based on standardized contractual terms, conditions and manufacturing slot reservations, and provides for potential future cooperation on new oil and gas technologies, technical support on projects and advanced skills development and training, including access to GE's world-class management practices in 'Lean' and 'Six Sigma', designed to improve productivity and workforce effectiveness.

GE Oil & Gas has a strong local presence in Vietnam in Hanoi and in Ho Chi Minh City for turbomachinery and drilling and production equipment and services support respectively. GE Oil & Gas provides advanced technology equipment and services to several high-profile projects in Vietnam, such as the BP Pipeline, Dung Quat Refinery, Phu My Refinery, Caumau Fertilizer and Vietsovpetro.

The MOU will enable GE Oil & Gas to more effectively partner on other potential large-scale projects with Petrovietnam, including Petrovietnam's Nghi Son Refinery, Long Son Refinery, Chevron Block B Off-Shore development and the Long Son Petrochem Complex.