GE’s Field-Proven and Flexible Technology to Help OGX Develop Offshore Brazil Oil Fields

GE Oil & Gas (NYSE: GE) has been awarded a major contract from OGX Petróleo e Gás Ltda. to supply drilling and production equipment for three offshore fixed production platforms to be deployed in the Waimea and Waikiki oil and gas fields of the Campos Basin, offshore Brazil, where OGX plans to drill a significant number of production wells over the next four years.

With a total potential estimated value of US$230 million over the next four years, of which US$32 million on formal orders has been already signed and booked as of today, this is the largest contract ever signed between GE Oil & Gas and OGX and the first one involving the supply of equipment specifically for development projects already in the production phase.

As a key part of the agreement, GE will provide a subsea template/tieback design that will allow OGX to have full flexibility between wells pre-drilled with semi-submersible rigs and wells drilled directly from the fixed platforms. This capability will help OGX to boost initial production of the Waimea and Waikiki fields by maximizing the use of the pre-drilled wells. GE’s template design has been field-proven in similar projects in West Africa.

"Our goal was to find a viable technology solution that gave us maximum flexibility in the development of the Waimea and Waikiki fields, and GE was able to meet that challenge,” said Reinaldo Belotti, production development director of OGX. "We are confident that GE’s continuing support and timely deliveries will be an important factor in the long-term success of this project,” reinforced Belotti.

The Waimea and Waikiki fields are located 60 kilometers off the coast of Rio de Janeiro, in water depths ranging from 120 to 140 meters.

GE Oil & Gas is committing to 80 percent local content in fulfilling the contract, with most of the subsea equipment to be built at GE plants in Jandira and Macaé, Brazil. Surface equipment will be partially supplied from GE facilities in Houston, Texas. Shipments will begin in the first quarter of 2012 and continue until the end of 2015.

"This is a major strategic win for GE Oil & Gas in Brazil, resulting from 13 months of outstanding teamwork among various GE business units and OGX,” said Calixto Deberaldini, Brazil oil and gas sales manager for GE. "The agreement builds upon our already strong relationship with OGX, which is one of our most important global customers,” emphasized Fernando Martins, Latin America vice president for GE Oil & Gas.

This latest agreement with OGX reinforces GE’s role as a leading supplier of subsea drilling systems for offshore operators in Brazil. Since 2007, the GE drilling and production business has provided more than 300 subsea wellhead systems to 15 different operators for projects offshore Brazil.

GE also has announced plans to invest US$500 million to expand its operations in the country, including the establishment of a multi-disciplinary research and development center in Rio de Janeiro. Among the focus areas for the new center will be advanced technologies for the oil and gas sector. In addition, GE’s recent acquisition of Wellstream, a leading producer of flexible pipe equipment, significantly expands GE’s capabilities to serve the Brazilian offshore market.

OGX is responsible for the largest private sector exploratory campaign in Brazil. Since its inception in June 2007, OGX has established a leading position in the Brazilian oil and natural gas exploration and production sector by acquiring a diversified portfolio comprised of 34 exploratory blocks—22 offshore and 12 onshore.

About GE

GE (NYSE: GE) is an advanced technology, services and finance company taking on the world’s toughest challenges. Dedicated to innovation in energy, health, transportation and infrastructure, GE operates in more than 100 countries and employs about 300,000 people worldwide. For more information, visit the company's Web site at www.ge.com.

GE also serves the energy sector by providing technology and service solutions that are based on a commitment to quality and innovation. The company continues to invest in new technology solutions and grow through strategic acquisitions to strengthen its local presence and better serve customers around the world. The businesses that comprise GE Energy—GE Power & Water, GE Energy Management and GE Oil & Gas—work together with more than 90,000 global employees and 2010 revenues of $38 billion, to provide integrated product and service solutions in all areas of the energy industry including coal, oil, natural gas and nuclear energy; renewable resources such as water, wind, solar and biogas; as well as other alternative fuels and new grid modernization technologies to meet 21st century energy needs.