The agreement brings together the complementary product offerings and engineering capabilities from the pair of companies to optimize engineering design and supply comprehensive topside solutions for FPSO projects.

NOV engineers and manufactures fluids pumping, treatment and processing systems; composite piping systems; cranes and deck machinery; and disconnectable turret mooring systems for FPSOs and related vessels. Additionally, NOV has installed and commissioned equipment on hundreds of vessels in dozens of shipyards for the oil and gas drilling industry, the pair said on a joint press release.

GE Oil & Gas engineers and manufactures technology solutions for many of the world’s most complex power generation and gas compression projects. Also, with its Subsea Production Systems, GE Oil & Gas offers a range of solutions including subsea trees, manifold & connection systems, and power & processing technology.

GE Oil & Gas may also involve other GE businesses in the collaboration with NOV.

The companies also said that the new, combined platform will provide topside systems with repeatable deliveries, scale economies and standardized interfaces, which are expected to reduce risk of construction delays and cost overruns for deepwater oil and gas customers. Additionally, the new platform will incorporate digital solutions, which will optimize performance and provide predictive analytics through the life of the vessels, enabling FPSOs to adapt to a wider array of operating parameters.

The industrialized manufacturing supply chain, combined with digital solutions and global service and aftermarket capabilities, is expected to maximize life-cycle efficiencies and drive down the cost of offshore oilfield development, the press release further said.

NOV and GE Oil & Gas expect to complete joint engineering efforts and start offering topside package solutions to the oil and gas industry by early 2017.

“We can materially improve deepwater production economics by industrializing the supply chain and standardizing complex interfaces between our complementary topside equipment,” said Clay Williams, NOV’s Chairman, President and Chief Executive Officer.

“For the past year we have quietly explored this new and better way to make floating production vessels and are excited about how this collaboration will change the industry and improve the economics of deepwater production development.”

“With this agreement, we are bringing together capabilities and expertise from GE Oil & Gas and NOV to better serve our customers and overcome oil and gas offshore industry challenges,” said Lorenzo Simonelli, President & CEO, GE Oil & Gas.

“Digital solutions will add even more value to the agreement. Digitization has become not only a competitive differentiator but increasingly, a necessity to help our customers make their businesses stronger long-term.”

NOV and GE Oil & Gas remain independent suppliers of equipment, services and systems.