GE purchases company of equipment for the pre-salt layer
Folha de S. Paulo
With an eye on the Brazilian market, General Electric announced yesterday it purchased Wellstream, supplier of equipment for the extraction of oil and gas in deep waters, for US$ 1.3 billion. GE seeks growth of more than 10% in the next five years in this sector, driven by the discovery of large reserves of oil, especially in Brazil. Wellstream is a Petrobras supplier since the late 1990s. Lately, the company has been expanding its operations in the country with an eye on the growth of the orders in the oil and gas sector, especially for the pre-salt layer.
The Brazilian State company is responsible for much of the profit of the company, which operates in Brazil since 2007, with a plant in Niterói. The company produced the lines of the first project of the pre-salt layer, the Long-Term Test in Tupi, in the basin of Santos. Besides Petrobras, the company has already supplied Chevron and Devon. Wellstream also has an agreement, closed recently, to supply equipment to OGX, owned by Eike Batista.
"Brazil is a key region for GE, and the acquisition of Wellstream demonstrates our long-term commitment to such high-growth region", said Claudio Santiago, Executive Officer of the sector of oil and gas of GE. Santiago also stressed the commitment of the company with Brazil reflects in the investments of the plant of the company in São Paulo, and in a Research Center, whose opening is scheduled for 2012, in Rio.
The North American holding has also said the acquisition is part of the company's strategy of investing in high-tech companies and increasing the presence in emerging markets. GE had tried to buy Wellstream in October. The offer was rejected for it was considered low.