Nexans wins 30 million Euro umbilicals order for Mexilhão gas field in Brazil

Paris, 3 October 2007 – Nexans, the worldwide leader in the cable industry, has been awarded a 30 million Euro contract by the state-owned Brazilian company Petróleo Brasileiro SA (Petrobras) to supply umbilicals for the Mexilhão gas field in the Santos Basin, off the coast of the state of São Paulo. Nexans is supplying two  different umbilical designs, totalling around 59 km in length, to connect the fixed platform to the subsea manifold and the manifold to the individual wellheads. Delivery should  commence in Q4 2008, and the umbilicals should  be shipped to the Petrobras base in Vitória/ES (state of Espirito Santo) Brazil.

The Nexans umbilicals will be used to provide electronic control of systems on the sea bed, and hydraulic and chemical liquid injection. The Mexilhão project is particularly challenging due to the high temperatures (+130°C at the well heads) and working pressures (10,000 psi) involved, which require very thick steel tube walls.

"Nexans was selected because, among the companies invited for the bidding process, we were the only company technically qualified and able to supply these types of umbilicals", says Patrick Barth, Nexans HV  & Accessories Managing Director. "We have had a long and successful working partnership with Petrobras and are delighted that they chose us for this contract. The maximum water depth in this project is around 500 m, however we are carrying out dynamic verification tests to 1,500 m to ensure they are fully qualified for similar projects in the future at much greater water depths."

"Two umbilicals each around 22 km in length, will run from platform, at a depth of 170 m, to the manifold at 500 m, which is the control/distribution unit on the sea bed. A further seven umbilicals, totalling nearly 15 km, will then run from the manifold to the seven well heads," adds Nexans' Project Manager, Per Johansen.

The Mexilhão umbilicals will be made at Nexans factory based in Halden, Norway. Petrobras is one of the largest oil companies in the world, mainly operating within Brazil. Delivery of the first gas from this field is due to commence in April 2009, coming ashore in the state of São Paulo, one of the biggest states in Brazil, with large industrial zones and dense population.

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About Nexans

With energy as the basis of its development, Nexans, the worldwide leader in the cable industry, offers an extensive range of cables and cabling systems. The Group is a global player in the infrastructure, industry and building markets. Nexans addresses a series of market segments from energy, transport and telecom networks to shipbuilding, oil and gas, nuclear, automotive, electronics, aeronautics, handling and automation. With an industrial presence in more than 30 countries and commercial activities worldwide, Nexans employs 21,000 people and had sales in 2006 of 7.5 billion euros. Nexans is listed on the Paris stock exchange, compartment A of the Eurolist of Euronext. More information on www.nexans.com

About Petróleo Brasileiro SA

Petrobras, with its international recognition and proprietary technology for ultradeep waters, is producing oil at competitive prices in offshore fields at increasingly greater depths, attracting interest from oil companies from the world over with which it is signing cooperation agreements to explore and produce in its reserves in the huge Brazilian submarine platform. Opening the exploration & production area to international partners has generated, in turn, E&P opportunities in other parts of the world, especially where Petrobras' know how can contribute to business implementation. Petrobras Distribuidora’s objective is to always render the best services through its upwards of 7,000 service stations throughout Brazilian cities and highways. With a history marked by pioneering initiatives and expressive results, BR maintains the leadership in the Brazilian oil by product distribution market, with more than 10,000 major companies as customers.