Prysmian Group accelerates expansion into OffShore Oil
New flexible pipes plant in Brazil now operational
New Petrobras contracts of some $50M for flexibles and special DHT Cables
More than $150M sales forecast already in 2011
Prysmian Group is stepping up its expansion into the business of products and
services for the offshore oil industry. The new flexible pipes plant in Brazil is now fully
operational and the integration with Draka has broadened the product range to special DHT (Downhole
Technology) cables, opening up new opportunities in the North American market. The Group also
announces the acquisition of important orders from Petrobras worth a total of some $50M, for the
supply of flexible pipes to connect platforms to wellheads thousands of metres below sea level, and
special DHT cables, including fibre optics to control downhole instrumentation, power and hydraulic
fluid cables. It is worth highlighting the significant Brazilian content of these projects, both in
terms of local workforce and know-how development and with regard to the use of domestic raw
materials.
"The start of full operations by the new plant in Brazil and the acquisition of the first
important commercial contracts – explains Fabio Romeo, Energy Business Senior Vice President -
marks a sharp acceleration in the Group's expansion plans in the high-tech sector of flexible pipes
for offshore oil production. In addition, Draka's entry into the Group has expanded the range of
technologies and products offered, created interesting cross-selling opportunities, as in the case
of the Petrobras contract for DHT cables, and accelerated this business's expansion outside of
Brazil, such as the USA and other areas of the world where oil is produced offshore such (West
Africa, Northern Europe and ASEAN). By the end of 2011 we expect to have made more than $150M sales
in this market - covering flexibles, umbilicals and DHT cables - confirming the importance of this
high-tech business for the Group".
Built with an investment of some $150M, including R&D, the plant stretches over an area
of 15,000 sqm and has the capacity to produce more than 150km of flexible pipes per year with a
workforce of some 400 employees. The new plant complements the existing umbilical cables plant,
opened in 2007 still in Vila Velha, and Draka's two Downhole Technology cable plants in
Massachusetts and New Jersey, USA. Petrobras remains the main customer and technological partner,
but following the Draka integration, the Group has widened its customer base to prestigious oil
industry names like Schlumberger, Baker- Hughes, BJ Services, GCDT and Roxar.
In detail, the Petrobras contracts refer to around 25km of 2 ½” and 4” flexible flow lines
for the Sidon and Namorado oil fields, and are worth a total of some $20M. The first contract
awarded by Petrobras to Draka is for the supply of DHT cables for various fields in the Campos
Basin, and is worth a total of some $30M over 3 years. This contract means not only further
consolidation of the Petrobras relationship but also a first important benefit deriving from the
integration. With Prysmian not previously present in this product category, the new Group has now a
wider range of technologies and can capitalise on Draka's already established presence in the
American market.
Related Info:
Prysmian awarded
US$42 million contracts for umbilical systems by Petrobras
Related Documents:
Press Release
Petrobras 2011
Highlights
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