GE Oil & Gas has received $11 million contract to supply four VetcoGray subsea wellhead systems and running tool rentals to OGX Petroleo e Gas Ltda (OGX Petroleo). The order, the second received by the GE Oil & Gas under a four-year frame agreement with OGX Petroleo signed in December 2008, will include the first two VetcoGray MS-800 subsea wellhead systems to be delivered in Brazil. Currently, OGX Petroleo is operating in nine exploratory blocks in the Campos and Santos Basins, offshore Brazil.

In Campos and Santos basins, offshore Brazil, several subsea exploratory wells will be drilled by OGX Petroleo within the next three years. The two VetcoGray MS-800 systems, plus two VetcoGray MS-700 systems also included in the new order, will be installed in those areas. Overall, OGX Petroleo has the exploration rights in 22 offshore high-potential blocks for a four-year exploratory drilling campaign that could include up to 51 wells offshore Brazil, with the potential to significantly increase Brazil’s oil discoveries.

“The latest order with OGX marks a major milestone for our new VetcoGray MS-800 subsea wellhead technology,” said Fernando Martins, vice president, Latin America Region for GE Oil & Gas, “These systems will provide OGX with greater flexibility in terms of casing programs for their deeper wells in Santos Basin. In addition, some of the components and tools used for MS-800 systems also can be used for the MS-700 systems, providing additional resources for OGX’s drilling projects. We are hopeful that the current order will lead to more opportunities for our MS-800 technology as OGX moves forward with its massive exploratory campaign”.

This additional order and acquisition of latest MS-800 subsea wellhead technology demonstrate OGX Petroleo confidence in the long-term partnership with GE Oil & Gas.

Commenting Reinaldo Belotti, production development director, OGX Petroleo said: “We consider GE Oil & Gas one of our key suppliers for our upcoming exploratory drilling campaigns in Campos and Santos Basins. We are glad to receive GE’s latest VetcoGray MS-800 subsea wellhead technology, coupled with outstanding field service performance and large experience in Brazilian water for our upcoming wells.”

All of the equipment for the new order with OGX Petroleo will be supplied by the Drilling & Production business of GE Oil & Gas and will be manufactured at the company’s facilities in Jandira, Sao Paulo state and Macae, Rio de Janeiro state, Brazil. The wellhead systems will be delivered to OGX Petroleo by December 2009.

GE Oil & Gas has inspected more than 50,000 kilometers of oil, gas, water and refined product pipelines in Latin America.