(By Balaseshan) General Electric Co. (NYSE: GE) said its unit GE Oil & Gas has received a contract worth more than $500 million to supply turbo-machinery equipment and services to Petrobras (NYSE: PBR).
The contract will serve the four new floating production, storage and offloading units (FPSOs P-74, P-75, P-76 and P-77) in the Cessao Onerosa region of the Santos Basin pre-salt fields, in the state of Sao Paulo.
GE Oil & Gas will supply the main turbo-machinery equipment to the four new FPSOs. The technology will generate primary energy for the FPSOs using gas turbines and advanced generators, moving gas through pipelines using compressors and re-injecting CO2 and natural gas back to the well to enhance the recovery of the oil.
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The main benefits of GE's proposal include an aggressive delivery cycle, high equipment reliability and efficiency, improved performance, emissions control and extended equipment life, the company noted. In the pre-salt fields, GE's technology will face some of the most challenging conditions.
The supply also takes in technology from other GE businesses, such as Power Conversion and Power & Water. The scope of supply includes: 16 powergen turbo-generators composed of PGT25+ gas turbines and electric generators; eight turbo-compression trains driven by LM2500+ gas turbines; and 32 electric motor driven compressors for gas main, export services and CO2 re-injection.
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In addition to core equipment, the new contract includes technical assistance for installation and commissioning start-up and extensive services, such as repair, dedicated local field service engineers and customer training.
As with previous major Petrobras contracts, significant local components will be involved. Packaging, testing, logistics and sourcing operations will be some of the stages carried out entirely in Brazil.
The installations where these operations will be held will start being prepared at the beginning of this year. GE also will carry out training, which will cover 9,600 man-hours, to supply the necessary competencies to operate and maintain the equipment.
GE closed Monday's regular session down 0.05% at $21.12. The stock has been trading between $18.02 and $23.18 for the past 52 weeks.