Petroleo Brasileiro S.A. (PBR) or Petrobras S.A. entered into phase two of the expanded contract with Zerust Prevencao de Corrosao S.A. The latter is the Brazilian unit of Northern Technologies International Corporation (NTIC).
As per the deal, Northern Technologieswill deliver an additional $2.6 million (BRL$ 4.21 million) of ZERUST FlangeSaver products. These will be used to shield a number of Petrobras' off-shore oil production rigs from corrosion damage.
The technologies used in manufacturing the anti-corrosive products are patented by Northern Technologies. The company also has a line of efficient and experienced personnel across most of its global centers to serve clients worldwide. These products will be useful in enhancing the service life of oil and gas industry infrastructure beyond the capabilities of conventional alternatives.
In July 2010, Petrobras had awarded phase 1 of the contract to Zerust for a consideration of $1.4 million (BRL$ 2.5 million). With the success of the initial implementation, Petrobras, which operates 109 off-shore rigs, proceeded to extend the deal.
Headquartered in Rio de Janeiro, Petrobras is involved in the exploration, exploitation and production of oil from reservoir wells, shale and other rocks, in refining, processing, trade and transport of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities.
We maintain our long-term Neutral rating on the stock, reflecting the company’s strong pipeline of development ventures, impressive exploration successes along with new investments and acquisitions, partially offset by a volatile macro backdrop, project cost overruns and operational hindrances.
NORTHERN TECH (NTIC): Free Stock Analysis Report
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