HOUSTON -- Regulatory News:

SLB (NYSE: SLB) has announced a major contract award by Petrobras (NYSE: PBR), following a competitive tender, to its OneSubsea™ joint venture for their standardized, pre-salt subsea production systems and related services. The scope covers the further development of two oil fields in the strategically important Santos Basin.

As part of the second development of the Atapu and Sepia fields, SLB OneSubsea will provide the Petrobras-standard configured, pre-salt vertical trees, subsea distribution units, subsea control systems and pipeline systems, along with related installation, commissioning and life-of-field services. Much of the technology and equipment to be deployed, including the vertical trees and subsea control systems, will be produced and serviced locally at SLB OneSubsea’s facilities in Brazil.

“This award deepens our valued partnership with Petrobras, and we are proud to be supporting the development of such important assets to Brazil,” said Mads Hjelmeland, chief executive officer of SLB OneSubsea. “Leveraging our proven, locally developed technology platform facilitates on-time delivery and maximizes local content from our Brazilian manufacturing and service facilities. Brazil is a key market for us, and our continued in-country investments are key to support the growth we envisage for the region.”

These projects add to Petrobras’ material pre-salt investments and will enable the addition of two new floating production, storage and offloading (FPSO) platforms, P-84 (Atapu) and P-85 (Sepia). They will each have a daily production capacity of 225,000 barrels of oil per day and processing of 10 million cubic meters of gas per day.