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GE and Petrobras Sign R$2.2 Billion ($1.1 Billion) Subsea Technology Deal

26 September 2012

GE’s oil and gas business will supply Brazil’s Petrobras with 380 subsea wellhead systems valued at over $1 billion, the largest such deal in history, the companies said. Petrobras plans to install the systems in various oil and gas fields off the coast of Brazil.”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 chief executive 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 [and] developing the entire supply chain. We want to grow with the country.”

The new contract builds on a $250 million subsea deal GE and Petrobras signed in 2009, also the world’s largest at the time in terms of number of wellheads.

GE has swelled into a subsea technology giant since the acquisitions of the offshore oil field production equipment supplier VetcoGray in 2007 and the purchase of the pipeline manufacturer Wellstream in 2011. GE’s subsea technology business now employs 5,000 people in 50 countries. GE workers have installed 1,200 wellhead systems, including 180 systems off the coast of Brazil.

Petrobras is one of the world’s largest energy companies. The company operates wells, pipelines and refineries in 27 countries on five continents. Petrobras is a world leader in deep water and ultra-deep water oil production. It operates approximately 100 production platforms, 15 refineries, 30,000 kilometers of pipelines and more than 6,000 service stations.