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Petrobras Selects GE Compression Modules for Offshore Oil Production Facility in Brazil
FLORENCE, ITALY (July 20, 2004) — GE Energy has signed a contract for more than US$50 million to supply two compression modules to Petrobras Netherlands BV for a new floating production unit (FPU) to be located in the Campos Basin, off the coast of Brazil.

Owned by Petrobras of Brazil, the new FPU, designated P51, will be one of the largest offshore facilities in Brazil to extract oil and gas at a water depth of approximately 2,000 meters. It is expected to produce approximately 180,000 barrels of oil per day, or 10% of the total national production, plus six million standard cubic meters per day of associated gas.

The P51 facility will operate off the Rio de Janeiro state coast in the Marlim Sul field of the Campos Basin, which accounts for more than 80 percent of Brazil's total oil output.

Earlier this year, GE received a contract from Petrobras to supply similar equipment for the P52 platform in the Roncador field of Campos Basin.

The two compression modules for P51 each will contain three motor compressor trains. The scope of the supply includes engineering, construction and assembly, commissioning and tests, transportation and delivery of the modules, and training. Also included will be technical assistance during the construction, assembly, testing, commissioning, pre-operation and start-up of the semi-submersible units.

The compressors and motors will be manufactured at GE Energy's facilities in Florence, Italy and shipped to Brazil by August of 2005. GE Energy will assemble and erect the compression modules in the state of Rio de Janeiro, to maximize local content and generate local employment. Due to the local activity, government of Rio de Janeiro will provide the project with an exemption from the ICMS, a Brazilian tax valued at 19% of the equipment sales amount. The modules will be installed on the P51 platform by Petrobras, with commercial operation expected by 2007.

"This project continues our long-standing relationship with Petrobras, one of the world's leading oil and gas companies," said Claudi Santiago, president of GE Energy's oil and gas operations. "We are pleased that our compressor technology has been selected to support this very significant endeavor."

Petrobras (Petroleo Brasileiro), the Brazilian state oil company, is an integrated corporation whose businesses include exploration, production, refining, retailing and transportation of oil and byproducts, natural gas, fertilizers and petrochemicals. Petrobras Netherlands, located in Rotterdam, is a subsidiary of Petrobras.

GE Energy's oil and gas operations are based in Florence, Italy, the home of Nuovo Pignone, a long-time global leader in gas compression and turbo generation products. GE acquired Nuovo Pignone in 1994 and since then has continued to expand its oil and gas platform by acquiring or developing partnerships with other technology and experience leaders in the industry.


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