Rolls-Royce enhances role in Brazil oil and gas industry with new Petrobras contracts valued at up to $650 million

Wednesday, 30 November 2011

Rolls-Royce, the global power systems company, has been awarded new contracts with a potential value of $650 million by Petrobras, a world leader in deep and ultra-deep water oil and gas exploration and production, to support its production activities offshore Brazil.

Rolls-Royce will supply Petrobras with thirty-two RB211 gas turbine power generation packages, including waste-heat recovery units, to meet the power generation requirements of eight separate Floating Production Storage and Offloading (FPSO) vessels. The FPSO’s, used for the processing of hydrocarbons and storage of oil, will operate in the petroleum rich Lula (formerly Tupi) and Guará oilfields, located in the pre-salt area of the Santos Basin off the coast of Brazil.

The new gas turbine power generation packages will be delivered in groups of four, with the first units scheduled for delivery in the first quarter of 2013.  Four gas turbine generating sets will be installed on each of the eight FPSO’s. To ensure that the FPSO vessels operate at peak performance levels, Rolls-Royce will also provide Petrobras with long-term services, technical support and training.

Andrew Heath, Rolls-Royce, President – Energy said: “We are delighted that Petrobras has again selected Rolls-Royce power generation technology to help meet its aggressive offshore oil and gas production objectives. Rolls-Royce has a strong record of equipment and services supply to Brazil’s energy sector and we are committed to supporting all our customers in the country with reliable, technology solutions and a strong localised presence.”

Francisco Itzaina, Rolls-Royce, Regional Director – South America said: “Rolls-Royce is committed to continuing to expand its technology presence and manufacturing capabilities in Brazil, and to stimulate the local economy through job creation, skills development and training. To fulfil these contracts we will further develop our local supply chain to provide critical components required for our gas turbine power generation equipment.”

In February Rolls-Royce announced plans for the construction of a new $100 million-plus purpose-built gas turbine package, assembly and test facility in Santa Cruz in the state of Rio de Janeiro which is expected to become operational in the first quarter of 2013. Equipment from these contract awards, scheduled for installation in the Lula (Tupi) and Guará oilfields, will be among the first units to be assembled and tested at the new Rolls-Royce facility.

The latest contract award increases the number of Rolls-Royce RB211-powered industrial gas turbine units installed in Brazil over the last 10 years to sixty-two. The combined total amount of energy generated by these units is equivalent to 1.8 gigawatts of electric power, enough to supply energy to over seven million people. 

Rolls-Royce has been active in Brazil for over 50 years and now has more than 500 employees across the country. 

  1. Rolls-Royce is a world-leading provider of power systems and services for use on land, at sea and in the air, and has established a strong position in global markets - civil aerospace, defence aerospace, marine and energy.
  2. As a result of this strategy, Rolls-Royce has a broad customer base comprising more than 500 airlines, 4,000 corporate and utility aircraft and helicopter operators, 160 armed forces, more than 4,000 marine customers, including 70 navies, and energy customers in nearly 120 countries, with an installed base of 54,000 gas turbines.
  3. Annual underlying revenues were £10.8 billion in 2010, of which more than half came from the provision of services. The firm and announced order book stood at £61.4 billion at 30 June 2011, providing visibility of future levels of activity.
  4. Rolls-Royce employs over 39,000 skilled people in offices, manufacturing and service facilities in over 50 countries. Over 11,000 of these employees are engineers.
  5. In 2010, Rolls-Royce invested £923 million on research and development, two thirds of which had the objective of further improving the environmental performance of its products, in particular reducing emissions.
  6. Rolls-Royce supports a global network of 28 University Technology Centres, which connect the company’s engineers with the forefront of scientific research.
  7. The Group has a strong commitment to apprentice and graduate recruitment and to further developing employee skills.
  8. In 2008 Rolls-Royce established a service support centre in Macaé, primarily dedicated to supporting the routine repair and maintenance of gas turbines supplied to Petrobras for its offshore operations.

About the Lula (formerly Tupi) and Guará oilfields

  1. The Lula (Tupi) and Guará oilfields located in the pre-salt area of the Santos Basin are estimated to have between 8 and 12 billion barrels of recoverable oil. The Santos Basin is located some 300 kilometres south east of São Paulo, off the coast of Brazil and is 352,260 square kilometres in size.
  2. “Pre-salt” is a rock formation of carbonate composition, which occurs under dense layers of salt at deep water depths. Since pre-salt has a high crude oil storage potential, it provides a new extraordinary frontier market for the extraction of oil reserves.
  3. The Tupi B.V. consortium is comprised of Petróleo Brasileiro (PETROBRAS), BG E&P Brasil Ltda. And PETROGRAL Brasil Ltda., holders respectively of 65%, 25% and 10% of the undivided rights. The Guara B.V consortium is comprised of Petróleo Brasileiro (PETROBRAS), BG E&P Brasil Ltda. and REPSOL YPF Brasil Ltda., holders respectively of 45%, 30% and 25%, of the undivided rights.

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