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FOR IMMEDIATE RELEASE:

PRYSMIAN AWARDED US$18 MILLION STEEL TUBE “UMBILICAL” CONTRACT BY PETROBRAS BRAZIL

THE SUPPLY IS PART OF THE STRATEGIC “PLANGAS” INITIATIVE AIMED AT SOLVING BRAZIL’S
GAS SUPPLY SHORTAGE

WITH THIS CONTRACT PRYSMIAN FURTHER STRENGTHENS ITS POSITION IN THE HIGHER END
MARKET SEGMENT OF INDUSTRIAL CABLES FOR THE OIL, GAS & PETROCHEMICAL (OGP) INDUSTRY

Milan, 27 March 2008 - Prysmian Cables & Systems, a world leading company in the Power and Telecommunication Cables and Systems industry, has been awarded a US$ 18m contract by Brazilian company Petrobras (Petróleo Brasileiro SA) for 35km of static and dynamic Steel Tube Umbilicals to be installed in a number of fields in the Santos, Campos and Espirito Santo Basins, located offshore to the Brazilian coastline. Umbilicals are multifunctional tubing systems which enable sub sea wellheads and manifolds to be connected to platforms or FPSO’s (Floating Production Storage and Offloading). Prysmian designs and produces these products and solutions at its industrial facility in Vila Velha, Brazil.

This contract represents a step forward in reinforcing Prysmian’s positioning in the high value-added market segments of industrial cables for the Oil, Gas & Petrochemical industry, and furthermore consolidates the relationship with its key client Petrobras. 

These Umbilicals will form part of the Brazilian State sponsored “Plangas” initiative whereby the Brazilian state controlled company, Petrobras,  intends to significantly increase its national daily gas production.The first step of this major project consists of the acceleration and expansion of gas fields already in operational or developmental phases and corresponds to 40% of the additional gas volume forecasted for 2008. The project requires electro-hydraulic umbilicals, in eight different configurations to be installed in nine fields along the Brazilian coast.

The Umbilicals will consist of 9x10,000 psi hydraulic lines, 3x10,000 psi injection lines and four pairs of electrical control cables. This contract will also mark one of the first dynamic production Super Duplex Stainless Steel Tube Umbilicals to be installed by Petrobras in Brazil, which historically has used Thermoplastic hoses. Ranging in water depths of up to 2000m, the umbilicals will be delivered on a fast track basis during 2008, following full qualification testing with the first delivery in mid 2008.

The Prysmian Group

A leading player in the industry of high-technology cables and systems for energy and telecommunication, the Prysmian Group is a truly global company with sales exceeding 5 billion euro in 2006 and a strong position in higher-added value market segments. With its two business, Energy Cables & Systems (submarine and underground cables for power transmission and distribution for industrial applications and for the distribution of electricity to residential and commercial buildings) and Telecom Cables & Systems (optical cables and fibres and copper cables for video, data and voice transmission), Prysmian boasts a global presence with subsidiaries in 35 countries, 54 plants in 21 countries, 7 Research & Development Centres in Europe, USA and South America, and over 12,000 employees. Specialising in the development of products and systems designed to meet clients' specific requirements, Prysmian's key strengths include a focus on Research & Development, the capacity to be innovative on products and production processes, and the use of advanced proprietary technologies. Prysmian is listed on the Milan Stock Exchange Blue Chip index.

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