General Electric (NYSE:GE) announced on Tuesday that it would provide sub-sea oil drilling well heads for Petrolea Brasileiro (NYSE:PBR), known as Petrobas, in a deal valued at $1.1 billion.
Under the agreement, GE will manufacture 380 well head systems for deployment under water. It will also build the equipment needed to install the well heads, Dow Jones noted.
Roughly three-quarters of the components for the well head systems will be manufactured in Brazil, at a GE factory located in the city of Jandira. The company recently spent $30 million to boost production capabilities at the facility.
The new deal is a record for GE, and the second big contract between the two companies. Three years ago, GE agreed to provide Brazil’s state-run oil producer with well heads and equipment for $250 million.
GE is looking to build its oil field services and equipment business in Brazil as the country’s oil industry expands.
Shares of GE rose fractionally in Wednesday afternoon trading.