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Petrobras signs pre-salt technology deal

30th March 2012

Technology provider stands to gain USD 1.5bn for supplying subsea technologies to Petrobras

Huge reserves of oil lie beneath Brazil's pre-salt basin

Global company FMC Technologies Inc. has signed a four-year agreement to provide sub-sea oil equipment to Brazilian oil giant Petrobras to help it unlock vast reserves in hard-to-reach areas.

FMC Technologies could stand to gain approximately USD 1.5bn in revenue if all of the subsea equipment included in the agreement is ordered, it said in a statement on 29 March. The technology would be deployed in the pre-salt regions off Rio de Janeiro.

The initial call-off has an approximate value of USD 900m in revenue to FMC and includes 78 subsea trees. 
The full supply could include the delivery of up to 130 subsea trees, subsea multiplex controls and related tools and equipment. The tree systems are for use offshore Brazil in water depths up to 8,200f.

The equipment will be engineered at FMC's South American Technology Centre and manufactured at FMC's subsea facility, both located in Rio. The subsea trees will achieve 70 per cent Brazilian local content and deliveries are scheduled to begin in 2014, said FMC.

"We have made significant investments in our Brazilian operations to enable large scale product manufacturing and the development of new technologies," said Tore Halvorsen, FMC's Senior Vice President, Subsea Technologies.

"Petrobras has awarded more than 500 subsea trees to our operations in Brazil over the past 30 years, and we are pleased to support them in developing their pre-salt reservoirs," he added.


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