GE Oil & Gas has signed a record deal of nearly $1.1B (USD) with Brazilian energy company Petrobras. This is the world’s largest subsea wellhead production contract. The contract includes the delivery of approximately 380 subsea wellhead systems and installation tools needed in oil well exploration.
More than 75 per cent of the parts will be made in Brazil.
GE announced the award of the contract at the 2012 Rio Oil & Gas in Rio de Janeiro. “This new agreement between two of the world’s largest companies shows our commitment to collaborate in the development of the oil and gas sector in Brazil,” said João Geraldo Ferreira, president and CEO of GE Oil & Gas for Latin America. “In recent years our investments and efforts have been focused on preparing our company to support market growth and to be ready for contracts of this size, developing the entire supply chain. We want to grow with the country.”
GE announced the award of the contract at the 2012 Rio Oil & Gas in Rio de Janeiro. “This new agreement between two of the world’s largest companies shows our commitment to collaborate in the development of the oil and gas sector in Brazil,” said João Geraldo Ferreira, president and CEO of GE Oil & Gas for Latin America. “In recent years our investments and efforts have been focused on preparing our company to support market growth and to be ready for contracts of this size, developing the entire supply chain. We want to grow with the country.”
Petrobras plans to install the subsea wellhead systems in various oil and gas fields in Brazil, including sub-salt. The equipment will be produced at the GE plant in Jandira (São Paulo), where GE has invested $30M (USD) to expand production capacity.
“The Jandira facility has been crucial in allowing GE Oil & Gas to provide world-class technology and has prioritized Brazilian-based production, which is a critical component in local social and economic growth,” said Fernando Martins, president of Subsea Systems for GE in Latin America.
In the last 30 years, more than 1,200 GE wellhead systems and 180 subsea Christmas trees have been produced and installed in Brazil.
Petrobras is a world leader in deepwater and ultra-deepwater oil production and operates approximately 100 production platforms, 15 refineries, 30,000 kilometers of pipelines and more than 6,000 service stations.
Petrobras is a world leader in deepwater and ultra-deepwater oil production and operates approximately 100 production platforms, 15 refineries, 30,000 kilometers of pipelines and more than 6,000 service stations.
In June 2012, GE announced the completion of the $32M expansion of its plant in Macaé (Rio de Janeiro), tripling the size of the facility and making it GE Oil & Gas’s most modern subsea system services provider in the world.