NKT awarded billion contract by Petrobras
MARITIME INDUSTRY: NKT Flexibles have signed a four-year frame agreement with Brazil’s largest oil company Petrobras covering the supply of flexible pipe deliveries in the period 2012-2015. Fully exercised, the contract may reach a value of up to 9.7b kroner.
“This is the NKT Group's largest contract ever. It confirms NKT Flexibles' position among the leading manufacturers in the industry”, says CEO Thomas Hofman-Bang.
A minimum of 50% of the value defined by the frame agreement is guaranteed for the four year period. The previous three-year frame agreement had a value of up to 1.4b kroner at full utilization, which has been fully exhausted by Petrobras in the period 2009-2011.
The new frame agreement includes up to 694 km flexible pipe structures, which during the first two years of the period will be manufactured at the Danish factory in Kalundborg.
Simultaneously, NKT Flexibles will initiate the construction of a dedicated flexible pipe plant in Brazil, expected to be ready for commercial operation during 2013. The plant will represent an initial investment of approximately one billion kroner and will be funded by NKT Flexibles.
NKT Holding owns 51% of NKT Flexibles, while 49% is owned by the offshore contractor Subsea 7.
Source: NKT / maritimedanmark.dk