General Electric Signs $600 Million in Brazilian Contracts
General Electric has done it again. Hard on the heels of its massive $500 million contract win in January, when the company was contracted to supply Petrobras with gas turbines and electric generators for use in a new pre-salt offshore oil project, GE announced multiple contract wins for further equipment to multiple customers, totaling $600 million in value.
According to the company, the contracts in question were signed over the past 12 months and pertain to "propulsion systems" sold to customers drilling in the pre-salt oilfields off Brazil's eastern coast. The systems in question "will power, propel, navigate, position, and control" 22 out of 29 drillships operating in the area "and also power and control the drilling process itself." And once again, GE singled out Petrobras as its primary customer on these contracts.
In a statement, GE noted that the pre-salt area in question is located as far as 300 kilometers from the Brazilian coast, in "rock formations up to 5 km below the seabed and in water depths of up to 2,000 meters." GE added: "The pre-salt layer holds an estimated 10-16 billion barrels of oil equivalent."
GE shares didn't respond to the news, however, instead declining 1.5% to close at $23.00.
The article General Electric Signs $600 Million in Brazilian Contracts originally appeared on Fool.com.Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool recommends Petrobras and owns shares of General Electric. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.