GE signs $300m agreement with Petrobras in Brazil

18 April 2018 (Last Updated April 18th, 2018 12:39)

GE Power Services business has signed an agreement with Brazil’s oil company Petrobras to service power-generation equipment located across 11 power plants.

GE signs $300m agreement with Petrobras in Brazil
GE Power Services business has signed an agreement with Brazilian oil company Petrobras. Credit: General Electric.

GE Power Services business has signed an agreement with Brazilian oil company Petrobras to service power-generation equipment located across 11 power plants.

The $300m deal is reported to be the largest for GE in the Latin American market.

As per the deal, GE will be covering 80% of the power generation equipment installed by Petrobras at its facilities.

The equipment installed at the facilities has the ability to generate 4.3GW of energy, which is equivalent to the residential power consumption of 57 million Brazilians.

GE Power Services business president and CEO Scott Strazik said: “This historic win marks our largest transactional power generation services agreement in Latin America.

“It builds on our successful relationship with Petrobras, reconfirms our commitment to our transactional business and supports our focus to work with our customers to find the right mix of solutions to help meet their dynamic needs. In addition, sustaining gas turbine performance in these times of ever-shrinking budgets can be a difficult challenge.

“Petrobras and GE have been working together for several years to ensure high performances of the power generation assets installed at our plants.”

“This project highlights how we can tailor the right services solutions to cut Petrobras’ operational and maintenance costs by up to 25% and provide support for the next four years.”

The four-year agreement signed with Petrobras includes inspections, parts and repairs for 20 of GE’s heavy-duty gas turbines, 23 of GE’s LM6000 aero-derivative gas turbines, three GE steam turbines and 13 GE generators.

Petrobras operation of energy assets support general manager Alexsandro Silva said: “Petrobras is an integrated energy company with a focus on oil and gas and constant commitment for greater efficiency in our investments and reduction of our costs without compromising our safety and production goals.

“Petrobras and GE have been working together for several years to ensure high performances of the power generation assets installed at our plants.

“We are pleased about this unique transaction experience with GE, which is expected to help Petrobras to accomplish the scheduled outages of our assets for the next four years, while also increasing significantly our savings in maintenance throughout the duration of the agreement.”