GE Oil & Gas, a unit of
) recently won a contract from Petrobras Brazil for the world's
largest subsea wellhead production. This contract is valued at
approximately $1.1 billion (R$2.2 billion) and will deliver
approximately 380 subsea wellhead systems and the required
installation tools in oil well exploration. However, it is
expected that more than three fourth (75%) of the wellheads will be
produced in GE's plant at Jandira, Sao Paulo, Brazil. GE has
invested about $30 million in order to expand its production
Earlier in 2009, GE Oil & Gas and Petrobras had signed the
biggest wellhead contract (in terms of number of wellheads) at that
time, worth $250 million. Given the huge demand in Brail, GE Oil
& Gas has been continuously investing in new capacities for new
order wins. Apart from the one mentioned above, GE has two other
facilities located in Niterói and Macaé, Rio de Janeiro, Brazil,
involving a total investment of about $232 million. The plant at
Niterói primarily targets the new sub-salt fields while the
facility at Macaé is GE Oil & Gas's most modern subsea system
services provider in the world.
The announcement of this contract was made by GE at the 2012 Rio
Oil & Gas being held from September 17-20 in Rio de
Furthermore, the acquisitions of Wellstream and VectcoGray have
made GE an established player in the offshore industry. With
employee strength of 5000, GE Oil & Gas handles some of its
industry's biggest and complicated projects in more than 50
With a market cap of $234.8 billion, General Electric Company
operates as a technology and financial services company worldwide.
It currently has a Zacks Rank #3, which implies a short term 'Hold'
rating on the stock.
GENL ELECTRIC (GE): Free Stock Analysis Report
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