Petrobras signs subsea wellhead contract worth nearly US $1.1 billion

Petrobras has signed the world’s largest subsea wellhead contract, worth nearly US $1.1 billion, with GE Oil and Gas. This includes the delivery of approximately 380 subsea wellhead systems and installation tools to be installed in various Brazilian oil and gas fields, including subsalt. More than 75% of the parts will be made in Brazil at the GE plant in Jandira, where the company has invested US $30 million to expand production capacity.

“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.” In 2009, GE Oil & Gas and Petrobras signed what was then the biggest wellhead contract in terms of number of wellheads, worth US $250 million.

In the past 30 years, more than 1,200 GE wellhead systems and 180 subsea Christmas trees have been produced and installed in Brazil. In Niterói in the state of Rio de Janeiro, GE is investing US $200 million to expand its flexible line plant to serve the new subsalt fields. In June 2012, GE announced the completion of the US $32 million expansion of its plant in Macaé, tripling the size of the facility. This expansion increased the work force at the site by 150%.