Cameron (NYSE:CAM) signed a Memorandum of Understanding (MOU) with Petrobras (NYSE:PBR), confirming Cameron's intent to enhance its research and development efforts in Brazil through a $30 million investment in R&D facilities at two locations.
Cameron's Jacarei plant in Sao Paulo State will add leading-edge testing capabilities, including a hyperbaric chamber, along with a high-pressure flow loop for use in testing and qualifying compact separators and measurement equipment. At the Universidade Estadual de Campinas (UNICAMP) compound in Campinas, also in Sao Paulo State, a new joint center for technology development will house Cameron's Center of Excellence for research in Brazil.
Cameron President and Chief Executive Officer Jack B. Moore said investment in these facilities represents another significant step in Cameron's longstanding commitment to the Brazilian oil and gas industry, including an expanding footprint in manufacturing, service and R&D programs, all supported by a growing local workforce.
"Over the past fifteen years, Cameron has continued to invest in local infrastructure to provide equipment and services in support of Petrobras' exploration and production efforts," Moore said. "We now have more than 1,000 locals employed in our Brazil facilities, including Cameron's market-leading manufacturing plant in Taubate, which is expected to deliver its 200th tree during 2011; our multifunctional aftermarket center in Macae; and the newly expanded Jacarei facility. In addition, we plan to add control systems and flow control equipment offerings to Cameron's product portfolio in Brazil."
Moore also noted that Cameron recently acquired Vescon Equipamentos Industriais Ltda., a Brazilian manufacturer of surface production equipment for more than 40 years. "Vescon provides an additional platform for growing Cameron's presence in the surface markets in Brazil, and is an ideal complement to our position as the leading provider of surface equipment worldwide," Moore said.
Petrobras is Brazil's largest company and the world's third biggest energy company in market value, according to a 2010 PFC Energy ranking. Present in 28 countries, Petrobras is a deepwater exploration leader, with a 22 percent share of the global market. It runs a fully-integrated system for exploration and production, refining, marketing, transporting and distributing petrochemicals, oil products, natural gas, biofuels, and electrical energy.