VetcoGray to Supply Equipment for Massive OGX Drilling CampaignOffshore Brazil

Program Could Include up to 51 Wells and Significantly Increase Country’s Discoveries

RIO DE JANEIRO - VetcoGray, a GE Oil & Gas business, has signed a four- year frame agreement with OGX Petroleo e Gas to supply subsea wellhead systems and casing strings for an exploratory drilling campaign that could include more than 50 wells offshore Brazil. The drilling campaign has the potential to significantly increase Brazil’s oil discoveries.

Created in 2007, in response to growing interest in major oil reserve discoveries off the Brazilian coast, OGX is the country’s largest independent oil company. OGX has already secured long-term contracts with four semi-submersible drilling rigs to conduct a massive four-year offshore exploratory drilling campaign that has a potential for up to 51 wells to be drilled in several blocks located in Santos, Campos, Espírito Santo and Pará-Maranhão basins offshore Brazil.

OGX has the exploration rights in 22 offshore high-potential blocks, with 4.8 billion barrels of oil equivalent (boe) of total estimated risked recoverable resources of oil and natural gas. Brazil has current proven oil reserves of 11.8 billion barrels, according to the U.S. Energy Department, not including the recent large discoveries in the pre-salt provinces.

The frame agreement with OGX, one of the largest agreements VetcoGray has ever secured in Brazil, will cover the supply of MS-700 and MS-800 subsea wellhead systems, including large bore casing strings, associated rental tools and onshore and offshore assistance during the entire drilling campaign.

The order for the initial six wells already has been placed and first delivery is planned for July 2009. The wellheads will be manufactured at VetcoGray’s Jandira Plant located in São Paulo state, Brazil and the casing strings package will be fabricated at the service center located in Macaé, Rio de Janeiro state.

The industry’s first all-metal sealing subsea wellhead system, the field-proven VetcoGray MS-700 meets demanding requirements for high-pressure critical service, deepwater drilling and production.

“The OGX award confirms VetcoGray’s leading position resulting from the outstanding performance of its MS-700 subsea wellhead systems as well as the world class support services offered to the Brazilian and global market,” said Fernando Martins, VetcoGray’s vice president for the Latin American region. “The contract demonstrates OGX’s confidence in VetcoGray as a leading supplier of subsea wellhead systems and services.”

Calixto Deberaldini, VetcoGray account manager for OGX, reinforced that VetcoGray “is the only supplier with strong presence in Brazil capable of providing fully integrated support for an exploratory drilling campaign of such magnitude.”

VetcoGray has been providing sophisticated subsea wellheads and subsea tree systems in Brazil for more than 30 years, with over 1,200 subsea wellheads and 180 subsea trees produced and installed there.

GE Oil & Gas, offering one of the industry’s most comprehensive portfolios of high technology products and services, continues to expand its presence across Latin America’s oil and gas sector, with more than 1,000 units of gas turbines and compressors installed throughout the region and over 50,000 kilometers of oil, gas, water and refined product pipelines successfully inspected to date. With the acquisition of VetcoGray, the business now has key regional offices in Argentina, Bolivia, Brazil, Ecuador, Peru, Mexico and Venezuela, providing customers with local manufacturing, sales and services capabilities.

About VetcoGray

VetcoGray (www.geoilandgas.com/vetcogray), a GE Oil & Gas business, has been a leading supplier of products and services to the global upstream oil and gas industry for more than a century. VetcoGray specializes in upstream drilling, completion and production technology for onshore, offshore and subsea oil and gas applications.

About GE Oil & Gas

GE’s Oil & Gas business (www.ge.com/oilandgas) is a world leader in advanced technology equipment and services for all segments of the global oil and gas industry. With headquarters in Florence, Italy, and operations in more than 70 worldwide locations, the company offers complete solutions for production, LNG, transportation, storage, refineries, and petrochemicals, as well as pipeline integrity solutions including pipeline-related software and pipeline asset management. Through its acquisition of VetcoGray and Hydril Pressure Control, GE Oil & Gas has added products, systems and services for drilling, completion and production within onshore, offshore and subsea applications.