Petrobras inks $260m umbilicals deal

Petrobras02 October 2013, News wires – Brazil’s Petrobras has signed a deal worth $260 million with an Italian company for the provision of subsea umbilicals for use predominantly on its pre-salt plays.

The state-owned oil giant has also extended an existing agreement with contract winner Prysmian with the supply of flexible pipes.

The new frame agreement with Milan-based Prysmian will see Petrobras take up to 360 kilometres of umbilicals for use on its pre-salt fields off Brazil.

The agreement contains a minimum 50% purchasing commitment with orders to be placed within a two-year period.

In addition, Petrobras has extended an existing frame agreement covering flexible pipes until 2016, Prysmian said on Tuesday. That deal has a value of $95 million with $20 million worth of orders already placed for use on the Macabu, Jubarte and Marlim Leste fields.

Both the umbilicals and flexible pipes will be fabricated at Prysmian’s Vila Velha facility in Espirito Santo state, Brazil.

Prysmian has worked with Petrobras on numerous previous occasions having been awarded a previous four-year, $135 million flexible pipe deal five years ago.

In early 2008 the Italian scooped an $18 million deal to supply steel tube umbilicals to Petrobras for use on fields in the Santos, Campos and Espirito Santo basins.

– Upstream

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