RIO DE JANEIRO (Reuters) - General Electric Co (GE.N) has signed a contract to supply 2.3 billion reais ($1.14 billion) in equipment to Brazil’s state-led oil firm Petrobras (PETR4.SA) according to a release distributed to reporters on Tuesday.
U.S. conglomerate GE will supply Petrobras with 380 oil exploration systems, the report said, as the oil giant tries to boost output. The deal is the largest between the two companies, which signed a similar accord worth $250 million in 2009.
The release said that 75 percent of the equipment’s value would be produced locally to comply with Brazil’s national content laws that were set up to protect local industry.
Reporting by Leila Coimbra; Writing by Caroline Stauffer; Editing by Gerald E. McCormick and Marguerita Choy