Prysmian sign subsea flexible pipe frame agreement with Petrobras
Prysmian Cables & Systems, a worldwide leading player in the energy and telecom cable sectors, has signed a four-year frame agreement with Brazil’s Petrobras, for the design and supply of flexible pipes for offshore oil&gas extraction. Initial supplies’ value is $135 million with significant potential development. This agreement represents a major step forward in the expansion of Prysmian’s operations in the Oil Gas & Petrochemical (OGP) services industry, confirming its commitment to invest in value-added businesses with higher profitability and levels of technology. The addition of Flexible Pipes to its current production of both steel and thermoplastic umbilicals will enable the Company to offer a comprehensive range of SURF products (Subsea Umbilicals, Risers and Flowlines) meeting the needs of the OGP industry. Prysmian will invest around $110 million for the construction of a new plant in Brazil. The new plant production capacity will be partly covered by the first supply agreement with Petrobras, allowing capacity for potential business development in the future. The new plant will complement the one dedicated to the production of subsea umbilicals opened in Brazil in early 2007.
In particular, Prysmian will supply Petrobras with a wide range of dynamic risers and static flowlines, covering up to 6” diameter pipes to be installed at great depths. Prysmian will develop this range of Risers and Flowlines through a series of Technical Cooperation Agreements (TCA’s) with Petrobras, the first of which was signed in January of this year. Valerio Battista, CEO of Prysmian S.p.A., commented on this major breakthrough: “We are delighted to further strengthen our 30 year-long relationship with Petrobras; this agreement is witness to our long term commitment to the key Brazilian market and specifically to Petrobras. In addition to this initial supply, the Technical Cooperation Agreements with Petrobras will allow Prysmian to further expand its range of products, with a strong potential for sales’ growth in the upcoming four year period”.
