GE to supply $1.14 billion of equipment to Petrobras

RIO DE JANEIRO Tue Sep 18, 2012 12:21pm EDT

General Electric Co. acknowledged on Thursday that a cut in its top-tier credit rating was possible, but its chief financial officer said there was no ''time bomb'' hidden in its hefty finance arm. REUTERS/Brian Snyder

General Electric Co. acknowledged on Thursday that a cut in its top-tier credit rating was possible, but its chief financial officer said there was no ''time bomb'' hidden in its hefty finance arm.

Credit: Reuters/Brian Snyder

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)

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