Latest News

GE to acquire Cameron’s Reciprocating Compression division

GE Oil & Gas will acquire Cameron’s Reciprocating Compression division for US$550 million.

Cameron is a US-based provider of flow equipment, systems and services.

The division provides reciprocating compression equipment and aftermarket parts and services for oil and gas production, gas processing, gas distribution and independent power industries.

Cameron’s Reciprocating Compression division, which generated sales of approximately US$355 million in 2012, has approximately 900 employees and operates from 20 global locations.

High-speed reciprocating compressors are used in several applications from gas gathering, gas lift and injection, as well as transmission and storage. The development of shale oil and gas fields has increased demand for high-speed reciprocating compressors.

As shale continues to develop in other regions of the world, such as Asia and South America, the acquisition will position GE to serve the industry globally.

Oil & Gas is one of GE’s fastest-growing businesses, with orders rising from less than US$1 billion per year in 1994 to nearly US$20 billion today and profits growing at an average 16 percent over the past three years.

After closing, Cameron’s Reciprocating Compression division will become part of GE’s Oil & Gas recently formed Downstream Technology Solutions business in order to serve the US$11 billion downstream and distributed gas segments.

The new business is designed to deliver products, services and packaged solutions for both the traditional downstream and the evolving unconventional oil and gas space.

Hasan Dandashly, vice president of Downstream Technology Solutions, said, "Cameron’s Reciprocating Compression division will become an important part of our downstream offering to customers. Its services and geographic presence will expand our distributed gas portfolio and enhance our shale capability and services expertise for our customers.”

The acquisition complements GE’s Oil & Gas’ existing High-Speed Reciprocating (HSR) business, which focuses in low horsepower units that are used predominantly in gas lift applications.

Cameron’s Reciprocating Compression division portfolio complements GE’s business by adding higher horsepower models used in gas gathering, processing and transmission.

The Downstream Technology Solutions business provides products, packaged solutions and services for refining, petrochemical, industrial and natural gas customers. Products include compression, industrial power generation, pumps and valves. The packaged solutions include smaller-scale CNG and modular LNG plants.

[Image: Cameron]

Send this to a friend