General Electric Company’s (GE) Oil & Gas division has been contracted to supply gas turbine and compressor to Petrobas BV in a $160 million deal. It involves supplying equipment to two floating production, storage and offloading units in offshore Brazil. The twin locations will produce 360,000 barrels of oil per day and will become functional in 2013.
The contract envisages supplying eight 31.1 MW gas turbo generator sets along with twelve motorized compressors. In addition, electric generators and motors will be sourced from Brazil. The entire manufacturing will be done in Florence, Italy.
With this contract, GE Oil & Gas enhances its dominance across the Latin American oil and gas sector, with more than 1,000 gas turbines and compressors and more than 50,000 kilometers of gas, petroleum and other refined products’ pipeline located in the region.
Based in Rio de Janeiro, Brazil, Petrobas is one of the largest corporations in Latin America controlling significant oil and energy assets in 18 countries worldwide. GE has one of the best infrastructure franchises worldwide with solid organic growth rates, exposure to favorable secular trends and a large installed base supporting a growing annuity-like service business.
Infrastructure businesses from GE are helping to build the energy, health, transportation and technology infrastructure of the new century. These businesses provide the products and services that help developing regions participate in the global economy and upgrade to a cleaner, more efficient and better infrastructure technologies.
Energy Infrastructure business is a leader in the field of development, implementation and improvement of products and technologies that harness resources such as wind, oil, gas and water. Its operations are located in North America, Europe, Asia, South America and Africa.
Within Energy Infrastructure, Oil & Gas supplies mission critical equipment to the global oil and gas industry, used in applications spanning the entire value chain from drilling and completion through production, transportation and pipeline inspection and including downstream processing in refineries and petrochemical plants.
General Electric is a global infrastructure, finance and media company. GE provides aircraft engines, power generation and water processing equipment, and security technology, medical imaging, business and consumer financing, media content and industrial products. GE has presence in more than 100 countries and employs in excess of 300,000 people worldwide.
We currently have a Neutral recommendation on General Electric.
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