Petrobras Tosses Wellstream a $1.1B Contract for Subsea Equipment

Wellstream do Brasil Industria e Servicos Ltda, a wholly owned subsidiary of Wellstream Holdings PLC, has announced the receipt of a 4-year framework agreement from Petroleo Brasileiro SA (Petrobras). The contract covers the procurement of standard 2.5 inch to 9.5 inch flowlines and risers between 2009 and 2012 and has a value in excess of GBP £600 million (US $1.1 billion); representing some 700 nkm(1) of pipe over the 4 year period.

Gordon Chapman, CEO commented, "This contract demonstrates the continued confidence of Petrobras in Wellstream as a preferred supplier and development partner. The contract also underpins our expansion plans for the Niteroi plant and allows us to support the growth ambitions of our customers in Brazil.

"This Frame Agreement is designed to cover standard structures that have been developed for existing fields in water depths up to 2,000 meters. Supply of flexible risers and flowlines for deeper water and specialized projects would represent additional volumes over and above those envisaged by the frame agreement."