Rolls-Royce wins $650m worth contracts from Brazil's Petrobras

British engine maker Rolls-Royce Holdings Plc said Wednesday that it has received new contracts with a potential value of $650m from Brazilian integrated oil and gas firm Petroleo Brasileiro SA or Petrobras to support its production activities offshore Brazil.

Rolls-Royce will supply 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 or FPSO vessels. Four gas turbine generating sets will be installed on each of the eight FPSOs.

These FPSOs, used for the processing of hydrocarbons and storage of oil, will operate in the petroleum rich Lula and Guará oilfields, located in the pre-salt area of the Santos Basin off the coast of Brazil. The oilfields are estimated to have between 8 and 12bn barrels of recoverable oil.

Rolls-Royce said it will deliver the new gas turbine power generation packages in groups of four, with the first units scheduled for delivery in the first quarter of 2013.

The equipment from the latest contracts will be assembled and tested at a new facility in Rio de Janeiro, which would become operational in the first quarter of 2013. It was in February that Rolls-Royce announced plans for the construction of a new $100m-plus purpose-built facility.

Rolls-Royce will also provide Petrobras with long-term services, technical support and training to make sure that the FPSO vessels operate at peak performance levels.

According to the company, 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, resulting in combined energy equivalent to 1.8 gigawatts of electric power.

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 a separate statement, Rolls-Royce announced the development of a new Marine Service Centre on Hong Kong's Tsing Yi Island, which is scheduled to open in 2012. The Centre will offer specialist support services and engineering expertise to customers in Hong Kong.

Rolls-Royce will hold its 2011 Investor Briefing today, focusing on its technology, operations and services activities.

Rolls-Royce shares are currently trading at 700.50 pence, down 4.50 pence or 0.64% in London.

In the U.S., the stock closed Tuesday's trading at $54.49, up $0.21 or 0.39%.

(Published by RTTNews - November 30, 2011)