Emerson Awarded $32 Million Contract By Petrobras For Offshore Oil And Gas Automation Upgrade | Automation.com

Emerson Awarded $32 Million Contract By Petrobras For Offshore Oil And Gas Automation Upgrade

July 292004
AUSTIN, Texas (July 29, 2004) -- Emerson Process Management, a business of Emerson (NYSE:EMR), announced today that it has been awarded a $32 million contract by Petrobras, one of the world's largest integrated oil and gas companies, to upgrade metering technology aboard nine floating production units.

The automation project will ensure reliable measurement of oil and gas production units in the offshore Marlim oil field of Brazil’s Campos Basin. Accurate, reliable measurement of oil and gas production – known as metering – is critical for fiscal accounting, custody transfer, and taxation purposes. Even small errors in daily metering can have a significant financial impact.

Emerson’s project management team will be responsible for the design, procurement, mobilization and installation onboard three floating production, storage, and offloading vessels (FPSOs), five semi-submersible production units, and one floating storage and offloading unit (FSO).

“We are completely committed to this challenge and we are contracting these state-of-the-art measurement and metering services in order to upgrade our installations,” said Rudimar Lorenzatto, Marlim Asset Manager, Petrobras. “We are producing around 500,000 barrels per day of oil and 460 Million cubic feet per day of gas and Emerson’s technology and metering expertise and experience make them a valuable partner for this sustained production effort.”

“Petrobras is adept at meeting the challenges of offshore, deep-water production, and we are pleased to have the opportunity to partner with them on this world class fiscal metering project,” said John Berra, president of Emerson Process Management. “It’s especially gratifying to employ our expert services from project management and commissioning on the front end, through to maintenance and calibration over the life of the field.”

The upgrade includes retrofitted measurement equipment and supplies, computers and displays. More than 1,500 final elements and instruments will be installed, including Emerson’s Daniel® and Rosemount® flowmeters, and Micro Motion® Coriolis flowmeters.

Emerson will also supply metering management services to increase confidence in the accuracy of measurement equipment being used, including maintenance and calibration of all instrumentation. The Emerson team will be responsible for validation and reporting of measurement data, as well as all metering, sampling and test equipment.

Emerson has established a new operation in Macae, the center for the support of the Petrobras Campos Basin fleet of floating units.

Brazil construction firm CNO (Construtora Norberto Odebrecht) has partnered with Emerson, and will perform planning, supply and mechanical completion valued at an additional $44 million.

About Emerson Process Management
Emerson Process Management (www.emersonprocess.com), an Emerson business, is a leader in helping businesses automate their production, processing and distribution in the chemical, oil and gas, refining, pulp and paper, power, food and beverage, pharmaceutical and other industries. The company combines superior products and technology with industry-specific engineering, consulting, project management and maintenance services. Its brands include: PlantWeb®; Daniel®; Micro Motion®; Rosemount®; Fisher®; DeltaVTM; Ovation®; and AMS™ Suite

About Emerson
St. Louis-based Emerson is a global leader in bringing technology and engineering together to provide innovative solutions to customers in process control; electronics and telecommunications; industrial automation; heating, ventilating and air conditioning; and appliance and tools. Sales in fiscal 2003 were $14 billion.

About Petrobras
Petrobras is among the world's largest integrated oil and gas companies, engaging in a broad range of activities, including: exploration, development and production of crude oil and natural gas; refining, transportation and wholesale marketing of crude oil, natural gas and oil products; and related activities. Petrobras began operations in Brazil in 1954.
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