GE Oil & Gas to Supply Advanced Subsea Wellhead Systems to Brazil's OGX

GE Oil & Gas has been awarded a contract of more than $11 million to supply four VetcoGray subsea wellhead systems and running tool rentals to OGX Petroleo e Gas Ltda., the largest independent oil company in Brazil.

The order, the second received by GE under a four-year frame agreement with OGX signed in December 2008, will include the first two VetcoGray MS-800 subsea wellhead systems to be delivered in Brazil.

OGX is currently operating nine exploratory blocks in the Campos and Santos Basins, offshore Brazil, where several subsea exploratory wells will be drilled within the next three years. The two VetcoGray MS-800 systems, plus two VetcoGray MS-700 systems also included in the new order, will be installed in those areas. Overall, OGX has the exploration rights in 22 offshore high-potential blocks for a four-year exploratory drilling campaign that could include up to 51 wells offshore Brazil, with the potential to significantly increase Brazil's oil discoveries.

"The latest order with OGX marks a major milestone for our new VetcoGray MS-800 subsea wellhead technology," said Fernando Martins, Vice President, Latin America Region for GE Oil & Gas, "These systems will provide OGX with greater flexibility in terms of casing programs for their deeper wells in Santos Basin. In addition, some of the components and tools used for MS-800 systems also can be used for the MS-700 systems, providing additional resources for OGX's drilling projects. We are hopeful that the current order will lead to more opportunities for our MS-800 technology as OGX moves forward with its massive exploratory campaign."

This additional order and acquisition of latest MS-800 subsea wellhead technology demonstrate OGX confidence in the long-term partnership with GE Oil & Gas.

Commenting Reinaldo Belotti, Production Development Director, OGX said, "We consider GE Oil & Gas one of our key suppliers for our upcoming exploratory drilling campaigns in Campos and Santos Basins. We are glad to receive GE's latest VetcoGray MS-800 subsea wellhead technology, coupled with outstanding field service performance and large experience in Brazilian water for our upcoming wells."

All of the equipment for the new order with OGX will be supplied by the Drilling & Production business of GE Oil & Gas and will be manufactured at the company's facilities in Jandira, Sao Paulo state and Macaé, Rio de Janeiro state, Brazil. The wellhead systems will be delivered to OGX by December 2009.

The VetcoGray MS-800 fullbore subsea wellhead system is designed to help drillers reach deepwater targets in such promising regions as the U.S. Gulf of Mexico and offshore Brazil. The system's increased casing load capacity allows drillers to run longer strings, enabling larger diameter holes to go deeper, reaching pay zones with bigger production strings. Higher pressure capacity also allows the MS-800 to withstand the higher geological formation pressures that come with deeper production.

In addition to its new technological capacities, the MS-800 builds on the field-proven design of the MS-700, both with sealing technology and with the running and testing tools. The industry's first all-metal sealing wellhead system, the MS-700 has been proven in nearly 20 years of operation and has been able to meet some of the industry's most demanding requirements for high-pressure, critical service, deepwater drilling and production.


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