GE_Batam facility

Subsea equipment supplier GE Oil & Gas has opened its newly expanded Batam Island subsea manufacturing facility in Indonesia, to meet demands of the region.

The $15m investment made since 2011 included technology upgrades and the new high bay workshop, where the company will begin manufacturing its first vertical subsea production trees in the Asia-Pacific region and increase local content in Indonesia.

Going forward, the facility will produce both vertical and horizontal subsea production trees.

GE Indonesia CEO Handry Satriago said the new manufacturing facility has been expanded to address the growing demand for subsea production equipment, as its customers look to develop new oil and gas reserves in the Asia-Pacific region.

"The expansion of our Batam facility underscores GE’s commitment to localising more of our company’s business capabilities in south-east Asia, especially in Indonesia, to support the country’s local economic and energy goals," Satriago added.

GE chairman and CEO Jeff Immelt visited Indonesia in February 2013, and announced the company’s plan to invest $300m in the next five years to support the country’s infrastructure development.

The investment includes the expansion of Batam subsea manufacturing facility, as well as the GE Learning and Technology Center establishment, a partnership with Perusahaan Listrik Negara, Garuda Indonesia and Pertamina. To date, the company has invested more than $1bn in Indonesia.

The expansion, which has created nearly 30 new jobs at the facility, is set to add another 50 to 70 new jobs in the next three years, GE said.

Republic of Indonesia Energy and Mineral Resources vice minister Susilo Siswoutomo said increasing the country’s oil and gas production and transportation infrastructure is important for supporting its economic growth.

"The expansion of GE’s subsea equipment facility will be a significant contribution for expanding our country’s manufacturing base, creating employment and developing human resources in the oil and gas industry," Siswoutomo added.

Image: GE’s Batam Island subsea manufacturing facility, in Indonesia. Photo courtesy of General electric.