World's Highest Value Subsea Wellhead Contract Signed

GE Oil & Gas signs record contract of nearly US$1.1-billion with Brazilian energy company Petrobras.

The contract, announced at the 2012 Rio Oil & Gas being held September 17-20 in Rio de Janeiro,  includes the delivery of approximately 380 subsea wellhead systems and installation tools needed in oil well exploration, and more than 75 percent of the parts will be made in Brazil.

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 US$30 million 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.

“The new contract builds on our existing relationship with Petrobras and follows previous successful projects,” said Rod Christie, vice president of GE Oil & Gas Subsea Systems. In 2009, GE Oil & Gas and Petrobras signed what was then the biggest wellhead contract in history to date (in terms of number of wellheads), worth US$250 million.