GE Signs Largest Ever Oil Parts Contract with Petrobas

General Electric's oil and gas division has signed a $250 million deal with the Brazilian energy company Petroleo Brasileiro for offshore drilling equipment.

The three-year agreement between GE and Petrobras is for 250 of GE Oil & Gas' VetcoGray subsea wellhead systems. GE says it is the largest contract awarded in the industry in terms of the number of wellheads involved.

Subsea wellheads are used drill for oil on the ocean floor and in deep water. Fairfield, Conn.-based GE plans to manufacture the wellheads at a plant in Sao Paulo, with the first deliveries expected in July.