Petrobras and GE Strengthen Technology Partnership with $90M Investment on New Wellstream Logistics Base in Niterói, Brazil

GE GE Oil & Gas is pleased to announce that its Wellstream business, acquired in March, has been awarded a long-term, flexible pipe and subsea equipment logistics services contract by Petróleo Brasileiro S.A. (Petrobras), one of the largest companies in Latin America which also controls significant energy assets in 18 countries worldwide. The long-term contract is initially valued in excess of $200M. To perform the long-term contract, GE will build a dedicated 55,000 sq. metre, $90M investment Wellstream flexible pipe and subsea equipment Logistics Base in Niterói, a commercial hub located 14 kms outside Rio de Janeiro. Petrobras will use the new facility to support its development of pre-salt oil and gas field projects in the Campos and Santos basins offshore Brazil. Luis Araujo, president—Wellstream Brazil, GE Oil & Gas said: “We are delighted to be selected by Petrobras for this contract and to strengthen our relationship with a new, $90M investment logistics facility dedicated to directly meeting Petrobras' ongoing subsea logistics requirements. The Wellstream Logistics Base will further expand GE's presence in Brazil and create up to 500 new jobs, helping to build local skills and expertise. This clearly demonstrates that, within the GE family, Wellstream is delivering value for customers and shareholders.” The new Logistics Base will be strategically positioned close to a number of key Petrobras components and services suppliers and adjacent to GE-Wellstream's existing Niterói manufacturing facility which supplies Petrobras and other operators in Brazil with high-quality, flexible risers and flowline products for oil and gas transportation subsea.