Brazil: GE Oil & Gas Wins USD 120 Million Subsea Equipment Maintanance Contract from Petrobras

Petróleo Brasileiro S.A. (Petrobras), a world leader in deep-water and ultra-deep water oil production, has awarded GE Oil & Gas a four-year service agreement to deliver repairs, maintenance and retrofits on Petrobras’ fleet of subsea equipment installed in the Campos Basin offshore Brazil. The scope of the agreement, valued at approximately $120M, includes service and repairs on over 300 exploration and 250 production tools, as well as retrofitting six subsea production trees each year with GE advanced technology.

GE will conduct the service program from its Macaé Service Center, located in Rio de Janeiro state, which is currently undergoing a $30M investment refurbishment and expansion. The 91,000 sq. meter facility, which employs over 200 highly skilled employees, will be capable of state-of-the-art inspection, maintenance, repair, spares parts, rental tools and field services for capital drilling, subsea wellhead systems, and subsea production and controls equipment.

Fernando Martins, vice president—Latin America, GE Oil & Gas said: “GE will apply its latest high-tech subsea equipment service and repair technologies across much of Petrobras’ Campos Basin installed fleet to help minimize downtime and optimize production output. We will deliver this important assignment from our Macaé Service Center which is currently under expansion and delivers critical offshore production servicing projects for customers including Petrobras, Transocean, OGX and Brasdrill and all the IOC’s currently operating in Brazil.”

The frame service agreement builds on the announcement this week that Petrobras has awarded GE’s Wellstream business a long-term, $200M-plus flexible pipe and subsea equipment logistics services contract to be supported from a dedicated new 55,000 sq. metre, $90M investment Logistics Base that GE will build adjacent to Wellstream’s existing manufacturing site in Niterói, 14 kms outside Rio de Janeiro.

In February GE Oil & Gas received $50M in contracts to supply subsea wellhead and installation tooling systems to Petrobras for deployment in Campos and Santos basin projects, bringing to over 1,400 GE’s tally of mission-critical subsea wellhead systems installed in Brazilian waters.

GE Oil & Gas has an established presence in Brazil and serves its deepwater segment with integrated drilling & production subsea equipment and services, as well as high-tech unit and modular gas turbines and compressors solutions for fixed & FPSO applications.

GE will open a new $100M investment Global Research Center in Rio de Janeiro in 2012.

About GE Oil & Gas

GE Oil & Gas is a world leader in advanced technology equipment and services for all segments of the oil and gas industry, from drilling and production, LNG, pipelines and storage to industrial power generation, refining and petrochemicals. GE Oil & Gas also provides pipeline integrity solutions, including inspection and data management, and designs and manufactures wire-line and drilling measurement solutions for the oilfield services segment. GE Oil & Gas exploits technological innovation from other GE businesses, such as aviation and healthcare, to continuously improve oil and gas industry performance and productivity. GE Oil & Gas employs more than 20,000 people worldwide and operates in over 100 countries.

About GE Energy

GE also serves the energy sector by providing technology and service solutions that are based on a commitment to quality and innovation. The company continues to invest in new technology solutions and grow through strategic acquisitions to strengthen its local presence and better serve customers around the world. The businesses that comprise GE Energy www.ge.com/energy – GE Power & Water, GE Energy Services and GE Oil & Gas – work together with more than 90,000 global employees and 2010 revenues of $38 billion, to provide integrated product and service solutions in all areas of the energy industry including coal, oil, natural gas and nuclear energy; renewable resources such as water, wind, solar and biogas; as well as other alternative fuels and new grid modernization technologies to meet 21st century energy needs.

About GE

GE is an advanced technology, services and finance company taking on the world’s toughest challenges. Dedicated to innovation in energy, health, transportation and infrastructure, GE operates in more than 100 countries and employs about 300,000 people worldwide.

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Source: GE , June 17 , 2011;