Rio De Janeiro (UPI) Mar 8, 2011
Energy giant GE has set sights on acquiring new business in Brazil's subsea drilling for oil and natural gas with its $1.3 billion acquisition of Wellstream, a producer of deep-water exploration and production equipment.
Brazil is in the early stages of launching a multibillion-dollar project to develop offshore hydrocarbon resources, most of which require drilling to great depths to reach potential wells under the seabed.
The government indicated it is looking for partners and investors but on its own terms, implying extensive technology transfer and sovereign control over the exploration and development of oil and gas resources.
GE said its acquisition of Wellstream Holdings PLC was a "significant milestone" that would help GE expand its portfolio of companies or units that are involved with various stages of manufacturing equipment for subsea operations or offering supportive services.
GE said its strategic acquisition of Wellstream Holdings PLC began after Wellstream announced the listing of its ordinary shares was canceled and Wellstream shares ceased to be admitted to trading on the London Stock Exchange.
By March 4, GE, through its wholly owned subsidiary, General Electric Austria GMBH, had received valid acceptances for 98.63 percent of Wellstream's shares. GE announced Feb. 16 that it had commenced the compulsory acquisition of Wellstream's shares from shareholders who have not yet accepted GE's offer, which it expects to complete by April 1.
The acquisition of Wellstream expands GE Oil & Gas' extensive subsea manufacturing and services portfolio and accelerates its presence in the fast growing deep-water production regions of Africa, Asia and Brazil.
Wellstream has more than 850 employees and operates two manufacturing facilities; one in Newcastle, England, and another in Niteroi, Brazil. The company specializes in the engineering and manufacture of high-quality flexible risers and flowline products for oil and gas transportation in the subsea production industry.
The acquisition enables GE to capitalize on growth in the floating production, storage and offloading offshore segment, which underpins deep-water oil and gas production.
Brazil has said it has extensive expertise in the field but can still use modern technologies from new partners. It isn't clear what role GE will play in Brazil's ambitious deep-water oil and gas exploration and development.
GE Oil and Gas Chief Executive Officer Claudi Santiago said Wellstream's people, technology and customer relationships, including those in Brazil, are an excellent addition to GE's oil and gas subsea portfolio, complementing its existing drilling and production product and service lines.
"Together, GE Oil and Gas and Wellstream now offer our customers an unrivaled, value-adding technology and services platform, underpinned by systems integration and reliable innovation," said Santiago.
The acquisition gives GE access to Wellstream's state-of-the-art manufacturing facility in Niteroi.
GE Oil and Gas employs more than 12,000 people worldwide and operates in more than 100 countries.
Share This Article With Planet Earth
N. Korea seeks to sell global carbon credits
Seoul (AFP) March 8, 2011
North Korea is hoping to sell UN-backed carbon credits from hydropower plants now being built, an aid group said Tuesday, as the isolated communist state struggles to secure more sources of hard cash. If approved by the United Nations, the North would be able to sell carbon credits to governments and companies trying to meet global greenhouse gas emissions reduction targets. The North as ... read more
Under US, Asia-Pacific to focus on green trade|
Duke Energy CEO Calls for Purpose-Driven Capitalism
GE hopes new acquisition helps Brazil bid
Berkeley Highlights Challenges Meeting 2050 Energy Goals
Energy Focus Lights Up US Navy Ships And Submarines
U.K. mulls new de-mining in Falklands
Tokyo, Manila protest Chinese harassment
Concerns Iran will hit gulf oil output
American Electric Technologies Announces Deployment With Emergya Wind Technologies
GL Garrad Hassan Delivers Wind Map Of Lebanon
Eon to build fifth U.K. offshore wind farm
GL Garrad Hassan Launches Onshore Wind Resource Mapping For UK
Ultrafast Laser 'Scribing' Technique Cuts Cost And Improves Efficiency Of Solar Cells
Solar Rainbow To Install 1MW System On Omni Holdings Complex
SunPower Signs 48MW Solar Power Supply Agreement With Toshiba
Hayward And REC Solar Unveil 1MW Solar System
Westinghouse And Endesa Sign Agreement On AP1000 Technology
Athabasca Uranium Completes Z-TEM Survey, Gears Up For Ground Work
China's State Nuclear Power Technology Selects Intergraph SmartPlant Enterprise
SPX To Supply Key Components For NPP In Germany
Malaysia says palm oil exports to EU down
Giant renewable diesel plant opens in Singapore
BESC Scores A First With Isobutanol Directly From Cellulose
Using Proteins As Raw Material For Biofuels And Biorefining
China setting up new rocket production base
China's Tiangong-1 To Be Launched By Modified Long March II-F Rocket
China Expects To Launch Fifth Lunar Probe Chang'e-5 In 2017
China's "Fantastic Four" Moon Plan
Europe turns up heat on climate targets
Flood-Tolerant Rice Plants Can Also Survive Drought
Talks on 'Green Climate Fund' postponed
Dry Lake Reveals Evidence Of Southwestern Megadroughts
|The content herein, unless otherwise known to be public domain, are Copyright 1995-2010 - SpaceDaily. AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by SpaceDaily on any Web page published or hosted by SpaceDaily. Privacy Statement|