Brazil is one of the world's largest oil producers, and its national oil company Petrobras has plans for $224 billion in capital expenditures from 2011-15 to support Petrobras' initiatives for pre-salt drilling.

GE's power conversion business announced it has been selected by Keppel Offshore & Marine Ltd. to supply the electrical power generation, thruster and drilling drive technology for six new semisubmersible drilling rigs for Brazil.

GE's electrical systems contribute significantly to the rig's efficient and effective performance in the challenging deep waters off Brazil's east coast. In the challenging waters of the Brazilian offshore, reliability is fundamental to operations and was thus a key factor in the decision to choose power conversion technology.

Keppel Offshore & Marine Ltd. recently announced that it had secured contracts from Sete Brasil Participações S.A. for the design and construction of semisubmersible drilling rigs based on Keppel's proprietary DSS 38E design. With the first rig scheduled to enter service in the fourth quarter of 2015, the deepwater drilling rigs will support the exploration of Brazil's estimated 50 billion barrels of deep-sea oil and gas reserves.

A recent report by the International Energy Agency's monthly oil market report forecasts world oil demand reaching 95 MMbo/d in 2016. By 2020, if Brazilian production plans are realized, Brazil could be providing as much as 8% of the world's oil supply.

Significant elements of the equipment delivery for these rigs will be delivered locally through GE's Brazilian manufacturing units to provide timelier, cost-effective solutions to the expanding Brazilian offshore and shipbuilding industries.

GE's equipment will be delivered in phases between 2012-16.