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GE oil and gas unit wins $1.1B contract in Brazil

RIO DE JAINEIRO, Brazil (AP) -- General Electric Co.'s oil and gas division has signed a nearly $1.1 billion deal with Brazil's state-run oil company Petrobras to provide offshore drilling equipment.

GE announced the contract at an industry conference in Rio de Janeiro on Tuesday.

The agreement includes delivery of about 380 sub-sea wellhead systems and installation tools needed in oil well exploration. More than 75 percent of the parts will be made in Brazil, said GE, based in Fairfield, Conn.

The contract comes more than three years after GE Oil & Gas announced a separate agreement with Petrobras worth $250 million, also covering subsea wellheads.

Petrobras plans to install the sub-sea wellhead systems in oil and gas fields in Brazil. The equipment will be produced at a GE's Jandira plant in Sao Paulo.

It's part of the Petrobras push to develop some of the largest oil finds discovered in recent decades. Reserves off Brazil's southeastern coast are thought to hold at least 50 billion barrels of oil in hard-to-reach deep waters.

Shares of GE rose 14 cents to $22.19 in afternoon trading.