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Petrobras Signs a Pump Unit Provision Agreement With Weatherford

Posted on March 30, 2009

After 18 months of intense negotiations, Petrobras signed with Weatherford, in Brazil, an agreement for the initial provision of 2,250 Pump Units (Sucker Rod Pump) to be used for onshore production in Northeastern Brazil and in EspĂ­rito Santos.

This agreement is particularly important because some three years ago, Weatherford announced it was going to close the only plant that produced this type of equipment in Brazil, located in Rio de Janeiro. It was a very old plant that was not getting enough orders to justify making investments to build a new unit. The company intended to supply Petrobras with production from plants it has in Canada and China.

Committed to the development of Brazil and to its goals to increase Local Content, Petrobras reassessed its Pumping Unit supply model and, under the light of its strategic planning target, it projected consumption for five years. This allowed scale for a long-term agreement with the installation of a new and modern plant in Brazil.

This new Pumping Unit plant will initially have 70% of its capacity contracted to meet part of Petrobras’ demand, while the remaining 30% will be set aside for other oil producers in Brazil or for exports. The agreement also calls, in a second phase, for the development of Major Pumping Units, in addition to the possibility of an extension for installation and maintenance services.

For more information: WWW.PETROBRAS.COM

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