Chevron and General Electric oil and gas technology units will invest and work together to developed advanced oil and gas production and refining technologies, they said Monday.
The collaborative research and development umbrella is called the Chevron GE Technology Alliance.
It will serve to get early-stage technology off the ground.
The new joint venture will be based at a new research center in Oklahoma City.
Chevron and GE already announced jointly developed flow meter products that Chevron is now testing at its wells in the western U.S.
General Electric’s manufacturing capabilities and Chevron’s oil and gas legacy will help the partnership “bring impactful new technologies to the industry,” according to Paul Siegele, president of Chevron’s energy technology subsidiary.
Lara Sweeney, a spokesperson for Chevron, said the companies haven’t estimated how much will be invested in the partnership’s research and development budget.
The partners signed a five-year agreement last July that can be extended by mutual agreement, Sweeney said.
“Chevron’s deep understanding of the oil and gas industry, combined with GE’s long tradition of technology development and close collaboration with strategic partners, will uniquely position this new alliance to address the industry’s technology needs,” said Lorenzo Simonelli, president and CEO, GE Oil & Gas.
“The solutions developed by this alliance will take on even more industry significance given Chevron’s proven leadership in being first to field-test and deploy new technology breakthroughs,” Simonelli said.
In December, GE said it selected a site in downtown Oklahoma City for the company’s first-ever Global Research Center dedicated to oil and gas technology.
GE said then, without mentioning the Chevron joint venture, that the new center will create 130 high-tech jobs.
GE’s downstream business sells pumps, valves, steam turbines and other gear trained on natural gas processing and oil refining.
Last month, GE acquired high-horsepower gas processing equipment from Cameron International for $550 million.