Rolls-Royce wins $650m Brazil contracts

City A.M. Reporter
British engineering group Rolls-Royce has been awarded contracts worth up to $650m (£418m) by Brazil's state oil company Petrobras to support its production activities offshore Brazil.

Rolls, which has businesses in the aerospace, defence, marine, energy and nuclear sectors, on Wednesday said it would supply Petrobras with 32 gas turbine power generation packages, including waste-heat recovery units, to help power eight production storage and offloading vessels.

"Rolls-Royce is committed to continuing to expand its technology presence and manufacturing capabilities in Brazil ... to fulfil these contracts we will further develop our local supply chain to provide critical components required for our gas turbine power generation equipment," said Francisco Itzaina, Rolls-Royce's regional director for South America.

Petrobras' Rolls-Royce-powered vessels will operate in the petroleum rich Lula and Guará oilfields, located in Santos Basin off the coast of Brazil.

Rolls, which is also the world's second-largest maker of aircraft engines, in February announced plans for the construction of a new $100 million purpose-built gas turbine assembly and test facility in the state of Rio de Janeiro which is expected to become operational in the first quarter of 2013.

The British company also said it would expand its presence in Greater China with the development of a new Marine Service Centre on Hong Kong's Tsing Yi Island, scheduled to open in 2012.