GE Oil & Gas has signed a memorandum of understanding (MoU) to invest $600m in research and development projects in the oil and gas sector in Italy over the next five years.
The firm, in cooperation with universities, research labs, and small and medium-sized enterprises, will invest in research, development and technological innovation in the country.
GE chairman and CEO Jeff Immelt said: “Today’s MoU provides a framework to further enhance the skills of the local workforce and boost research and development in cutting edge oil & gas technology made in Italy for the world.”
Under the terms of the MoU, GE Oil & Gas will invest in project, known as Galileo, to help increase oil and gas production in Italy by 50% while stringing the company’s revenue by $1.7bn in five years.
The firm will also invest in developing a facility to build turbines and compressors in the central region of Tuscany.
GE Oil & Gas CEO and president Lorenzo Simonelli said: “We thank the central and local institutions for supporting us as in this ambitious and strategic project for our company that will enable us to develop new, ore efficient, lighter and more competitive technologies for the global oil and gas industry.”
Separately, GE signed another agreement recently with aviation unit Avio Aero to invest €200m over the next four years in order to design production processes to help maintain the technological competitive edge of the research laboratories and production plants of Avio Aero.