Prysmian Awarded $18 Million 'Umbilical' Contract by Petrobras

Prysmian Cables & Systems, a world leading company in the Power and Telecommunication Cables and Systems industry, has been awarded a US$ 18m contract by Brazilian company Petrobras (Petroleo Brasileiro SA) for 35km of static and dynamic Steel Tube Umbilicals to be installed in a number of fields in the Santos, Campos and Espirito Santo Basins, located offshore to the Brazilian coastline. Umbilicals are multifunctional tubing systems which enable subsea wellheads and manifolds to be connected to platforms or FPSO's (Floating Production Storage and Offloading).

The supply is part of the strategic "PLANGAS" initiative aimed at solving Brazil's gas supply shortage.

With this contract, Prysmian further strengthens its position in the higher-end market segment of industrial cables for the Oil, Gas & Petrochemical (OGP) industry.

Prysmian designs and produces these products and solutions at its industrial facility in Vila Velha, Brazil. This contract represents a step forward in reinforcing Prysmian's positioning in the high value-added market segments of industrial cables for the Oil, Gas & Petrochemical industry, and furthermore consolidates the relationship with its key client Petrobras.

These Umbilicals will form part of the Brazilian State sponsored "Plangas" initiative whereby the Brazilian state controlled company, Petrobras, intends to significantly increase its national daily gas production. The first step of this major project consists of the acceleration and expansion of gas fields already in operational or developmental phases and corresponds to 40% of the additional gas volume forecasted for 2008. The project requires electro-hydraulic umbilicals, in eight different configurations to be installed in nine fields along the Brazilian coast.

The Umbilicals will consist of 9x10,000 psi hydraulic lines, 3x10,000 psi injection lines and four pairs of electrical control cables. This contract will also mark one of the first dynamic production Super Duplex Stainless Steel Tube Umbilicals to be installed by Petrobras in Brazil, which historically has used Thermoplastic hoses. Ranging in water depths of up to 2000m, the umbilicals will be delivered on a fast track basis during 2008, following full qualification testing with the first delivery in mid 2008.


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