GE Oil & Gas has a big subsea drilling win under its belt with the news today that its drilling & production business has been awarded a three-year agreement valued at more than $250 million to supply 250 VetcoGray subsea wellhead systems to Petrobras of Brazil. In terms of the number of wellheads, it’s the largest contract awarded to date in the industry.


GE sells subsea wellheads by the Brazilian seashore: With this contract, GE Oil & Gas continues to expand its presence across Latin America’s oil and gas sector, with more than 1,000 gas turbines and compressors installed throughout the region. In addition, the company has inspected more than 50,000 kilometers of oil, gas, water and refined product pipelines in Latin America.

As offshore drilling pushes past 10,000-foot water depths and 30,000-foot wells, pressure increases exponentially – and not only below the surface. The extreme operating conditions create extreme technological pressures too, which is why the subsea wellhead system must be reliable if the operation is to succeed. GE’s wellhead system – which is what today’s deal is for — is used to suspend so-called “casing strings,” which are the long sections of connected pipes used in the drilling. The wellheads also help seal the oil wells. Taken as a whole, the wellhead system effectively is the upper ending point of the well and provides a mounting position for the equipment that controls the flow of oil up to the surface.

The advanced wellheads will be manufactured in the GE Oil & Gas Jandira plant in the state of Sao Paulo, Brazil, with the first unit due for delivery in July 2009.


We know the drill: Following the acquisition and integration of VetcoGray and Hydril Pressure Control, GE Oil & Gas now has key regional offices in Argentina, Bolivia, Brazil, Ecuador, Peru, Mexico and Venezuela, providing customers with local manufacturing, sales and services capabilities.

“This agreement reinforces our strong presence in Brazil, where more than 1,200 of our subsea wellhead systems and 180 of our subsea trees have been produced and installed over the past 30 years,” said Fernando Martins, vice president, Latin America Region, GE Oil & Gas.

GE is currently negotiating with Petrobras, which is also known as Petroleo Brasileiro S.A., for a separate contract to provide services for the equipment. Based in Rio de Janeiro, Petrobras is one of the largest companies in Latin America and controls significant oil and energy assets in 18 countries worldwide. GE’s systems are part of Petrobras’ drilling campaign to reach 3.3 million barrels of oil equivalent per day by 2013.

GE Oil & Gas, which had 2008 revenue of $7.8 billion, employs more than 12,000 people worldwide and operates in over 70 countries.


* Watch a video with GE’s Fernando Martins
* Read the announcement
* View a downloadable fact sheet about GE Oil & Gas
* View a downloadable fact sheet about our wellhead systems
* Learn more about GE Oil & Gas on our website
* Read GE Reports’ story about our pipeline inspection technology
* Watch a video about inspecting “unpiggable” pipes
* Read about our work on China’s massive West-to-East pipeline