GE, Petrobras Sign World’s Largest Subsea Wellhead Production Contract

It’s a gas: GE began its oil and gas operations in Brazil in 1989. Just last year the company won a $250 million contract to supply Petrobras of Brazil with 250 of GE’s advanced VectroGray subsea wellheads for deep-sea drilling. The VectroGray wellheads are manufactured in the GE Oil & Gas Jandira plant in Sao Paulo, Brazil. “Overall, oil and gas is one of the major opportunities we have in Brazil,” Ferreira said.

GE Oil & Gas and Brazilian energy company Petrobras have signed the world’s largest subsea wellhead production contract, worth nearly US$1.1 billion (R$2.2 billion). This 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.

GE announced the award of the contract at the 2012 Rio Oil & Gas being held September 17-20 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.”

“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.

“Through the acquisition of VetcoGray in 2007 and Wellstream in 2011 and ongoing investments in technology, GE has become an established player in the offshore industry,” said Christie. “With more than 5,000 subsea employees operating in more than 50 countries we are supporting some of the industry’s largest and most challenging projects.”

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. 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 an integrated energy company that operates in 27 countries on five continents. It 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.

Press Release, September 19, 2012

Share this article

Follow Subsea World News

Events>

<< Sep 2016 >>
MTWTFSS
29 30 31 1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30 1 2

Natural Gas Course: From Wellhead to Burner-Tip

Oak Leaf Energy Training is continuing to offer CERI’s cornerstone course, first presented almost 20 years ago. Revised and fully updated…

read more >

Petrotech 2016

The conference content is managed by a committee of industry experts representing NOCs, IOCs, service providers and academia active…

read more >

SPE Annual Technical Conference and Exhibition

The event will embrace the conference’s heritage of excellence, drawing on the expertise of leading international oil and gas professionals…

read more >

ADVANCED SUBSEA POWER AND HEATING CABLES FOR THE OIL AND GAS INDUSTRY

This conference will establish a common understanding of the challenges and indicate future application and performance of subsea electrical…

read more >