GE Oil and Gas has signed the world’s largest subsea wellhead production contract, worth nearly $1.1bn, with Brazilian energy company Petrobras.
Under the terms of the deal, GE will deliver 380 subsea wellhead systems and installation tools, which are required in oil well exploration activities at oil and gas fields in Brazil, including sub-salt.
More than 70% of the equipment will be manufactured at the GE plant in Jandira (São Paulo), where it has invested $30m to expand the production capacity.
Rod Christie, GE Oil & Gas Subsea Systems vice president, said the company has received previous contracts from Petrobras, and that the new contract builds on its existing relationship.
Petrobras awarded a wellhead contract worth $250m to GE Oil and Gas in 2009.
"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," Christie said.
"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."
Fernando Martins, GE Latin America Subsea Systems president, said: "The Jandira facility has been crucial in allowing GE Oil and Gas to provide world-class technology and has prioritized Brazilian-based production, which is a critical component in local social and economic growth."
Brazil’s state-owned oil company Petrobras operates approximately 100 production platforms, 15 refineries, 30,000km of pipelines and more than 6,000 service stations.
Image: GE’s Fairfield Campus in the US. Photo courtesy of: GE.