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Press release from Business Wire

GE Oil & Gas Wins US$500 Million Petrobras Contract

<p> <i>GE Technology Will be Used on Four New Floating Production, Storage and Offloading Units (FPSOs), All of Them for the Santos Basin (São Paulo State), in the Pre-Salt Fields</i> </p>

Tuesday, January 15, 2013

GE Oil & Gas Wins US$500 Million Petrobras Contract08:00 EST Tuesday, January 15, 2013 RIO DE JANEIRO (Business Wire) -- GE Oil & Gas (NYSE: GE) has won a contract worth more than US$500 million to supply turbomachinery equipment and services to Petrobras, a world leader in deep-water oil production. The contract will serve the four new floating production, storage and offloading units (FPSOs P-74, P-75, P-76 and P-77) in the Cessão Onerosa region of the Santos Basin pre-salt fields, in the state of São Paulo. “Our focus is to seek partnerships like this, where GE can offer its expertise to support the economic development of Brazil,” said Reinaldo Garcia, president and CEO of GE Latin America. “The country continues to assume an increasingly strategic position to the company's business globally, and Petrobras is one of the most important partners we have.” The main benefits of GE's proposal include an aggressive delivery cycle, high equipment reliability and efficiency, improved performance, emissions control and extended equipment life. In the pre-salt fields, GE's technology will face some of the most challenging conditions. “This contract with Petrobras demonstrates GE's technological offshore leadership and our capacity to face our clients' most difficult challenges,” says João Geraldo Ferreira, president and CEO of GE Oil & Gas for Latin America. “This win was the result of the collaboration between the different product and business lines at GE, demonstrating the strength of the company's integration.” GE Oil & Gas will supply the main turbomachinery equipment to the four new FPSOs. The technology will generate primary energy for the FPSOs using gas turbines and advanced generators, moving gas through pipelines using compressors and re-injecting CO2 and natural gas back to the well to enhance the recovery of the oil. The scope of supply, which also takes in technology from other GE businesses, such as Power Conversion and Power & Water, includes: 16 powergen turbogenerators composed of PGT25+ gas turbines and electric generators. Eight turbocompression trains driven by LM2500+ gas turbines. 32 electric motor driven compressors for gas main, export services and CO2 re-injection. In addition to core equipment, the new contract includes technical assistance for installation and commissioning start-up and extensive services, such as repair, dedicated local field service engineers and customer training. As with previous major Petrobras contracts, significant local components will be involved. Packaging, testing, logistics and sourcing operations will be some of the stages carried out entirely in Brazil. The installations where these operations will be held will start being prepared at the beginning of this year. GE also will carry out training to supply the necessary competencies to operate and maintain the equipment. Training will cover 9,600 man-hours. About GE GE (NYSE: GE) works on things that matter. The best people and the best technologies taking on the toughest challenges. Finding solutions in energy, health and home, transportation and finance. Building, powering, moving and curing the world. Not just imagining. Doing. GE works. For more information, visit the company's website at www.ge.com. About GE Oil & Gas GE Oil & Gas is a world leader in advanced technologies and services with 35,000 employees in more than 100 countries supporting customers across the industry—from extraction to transportation to end use. Making the environment, health and safety, quality and integrity our highest priorities is The Way We Work. Our technologies and services include: surface and subsea drilling and production, monitoring and diagnostics, measurement and controls, large-scale LNG, pipeline compression and inspection, well site and industrial power generation, technologies for the refining and petrochemical industries, and modular CNG and LNG units for transportation sectors. Through our customized service solutions, training programs and technologies, GE Oil & Gas partners with customers to maximize their efficiency, productivity and equipment reliability; develop their next generation workforce; and fully benefit from the megatrends of natural gas, the growth of subsea and hard-to-reach reserves and the revolution in asset health management. Follow GE Oil & Gas on Twitter @GE_OilandGas. GE Oil & GasFabio Pianini, +39 055 423 8872fabio.pianini@ge.comorSean Gannon, +1 212-587-5059sean.gannon@ge.comorMasto Public RelationsKen Darling or Kate Culman+1 518-786-6488kenneth.darling@ge.comkate.culman@mastopr.com