Curtiss-Wright Signs Subsea Seal-Less Canned Motor Boosting System Agreement With Petrobras

Rhea-AI Summary

Curtiss-Wright Corporation (CW) has signed a Technology Cooperation Agreement with PETRÓLEO BRASILEIRO S.A. – PETROBRAS (PBR) to develop a Subsea Canned Motor Boosting System for a Petrobras production field in Brazil. The system aims to enhance subsea production efficiency and reliability, offering an all-electric solution with reduced outages and production interruptions.

Energy Industry Analyst

The collaboration between Curtiss-Wright Corporation and PETROBRAS to develop a Subsea Canned Motor Boosting System represents a significant advancement in subsea technology, particularly for deep-water hydrocarbon extraction. By integrating Curtiss-Wright's canned motor technology with PETROBRAS' expertise in offshore production, the partnership aims to enhance operational efficiency and reliability in the Campos Basin, a critical site for Brazil's oil production. This technology is poised to reduce dependency on topside support systems, which can be both costly and logistically complex, especially in remote deep-water locations.

The introduction of a 'topside-less' system could lead to a paradigm shift in the industry, offering more economical deployment options and potentially reducing capital and operational expenditures. This is particularly relevant as the industry moves towards long tie-back production arrangements, which are necessary to exploit remote reserves. The system's scalability up to 6MW for multiphase applications indicates Curtiss-Wright's commitment to supporting future demands of offshore production, aligning with industry trends towards increased efficiency and reduced environmental footprint.

Financial Analyst

From a financial perspective, the agreement between Curtiss-Wright and PETROBRAS could have significant implications for Curtiss-Wright's revenue streams and market positioning. The development of the Subsea Canned Motor Boosting System allows Curtiss-Wright to diversify its product offerings and tap into the lucrative oil and gas sector. Given the expected operational readiness in 2027, this long-term project could provide a sustained revenue source for Curtiss-Wright, assuming successful implementation and adoption.

Investors should take note of the potential for this technology to become a new industry standard for subsea boosting, which would lead to a competitive advantage for Curtiss-Wright. However, the capital-intensive nature of research and development in this sector means that initial costs could be high, with returns on investment materializing over a longer horizon. The partnership with a state-owned enterprise like PETROBRAS also adds a layer of geopolitical risk that should be factored into any financial analysis.

Market Research Analyst

The strategic partnership between Curtiss-Wright and PETROBRAS indicates a growing market demand for innovative subsea technologies that can operate in challenging environments like the Campos Basin. The Subsea Canned Motor Boosting System is likely to garner interest from other oil and gas companies seeking to improve their subsea operations. Market trends suggest an increased focus on all-electric systems that offer environmental and operational benefits.

By analyzing competitor activities and market demand, it becomes evident that Curtiss-Wright could potentially capture a significant market share if the technology proves successful. The flexibility and scalability of the system could meet various market needs, from small to large-scale operations. It is essential to monitor the development and testing phases closely, as they will provide critical insights into the system's performance and market viability.

DAVIDSON, N.C.--(BUSINESS WIRE)-- Curtiss-Wright Corporation (NYSE: CW) today announced that it has signed a Technology Cooperation Agreement with PETRÓLEO BRASILEIRO S.A. – PETROBRAS (NYSE: PBR) to design, manufacture, test, and provide operational support for a Subsea Canned Motor Boosting System, to be deployed mudline at a Petrobras production field in the Campos Basin, Brazil.

Curtiss-Wright is working jointly with Petrobras to develop a subsea boosting system for unprocessed hydrocarbon fluid consisting of a mixture of oil, gas and particulates that will operate at a 1,500-meter water depth. The system will leverage Curtiss-Wright’s canned motor technology, as well as Petrobras’ expertise in flow assurance and offshore hydrocarbon production and processing, to ensure the subsea boosting system will perform according to field requirements. Further, it is expected to serve as an effective and reliable alternative to current subsea pump technologies by reducing unplanned outages and production interruptions.

“We are excited to be working collaboratively with a leading technology developer and experienced end-user of downhole pumping and mudline boosting systems for demanding applications,” said Lynn M. Bamford, Chair and CEO of Curtiss-Wright Corporation. “These efforts will allow us to apply our proven canned motor technology expertise to this adjacent market, thereby enabling an all-electric subsea production system, while providing an opportunity to bring tremendous value to Petrobras.”

Curtiss-Wright’s canned motor pump technology is expected to enable reliable subsea production with fewer topside support systems, and also provide flexibility to deploy these systems on lighter weight, lower cost vessels, which are more readily available than the larger handling vessels required in today’s operations. This “topside-less” technology will support Petrobras’ objective of all-electric subsea boosting systems to enable long tie-back production arrangements. Additionally, the design provides flexibility to deploy future Curtiss-Wright topside-less subsea boosting systems scalable to 6MW for multiphase applications, in alignment with Petrobras’ technology development roadmap.

Curtiss-Wright is performing the design, manufacturing, and water-based testing at its Cheswick, Pennsylvania facility within the Company’s Naval & Power Segment. Multiphase testing with hydrocarbons will take place at a facility in Brazil. The first Subsea Canned Motor Boosting System is expected to be ready for operation in 2027.

For more information on Curtiss-Wright’s Naval & Power Segment products, please visit www.curtisswright.com/organization/naval-power.

About Curtiss-Wright Corporation

Curtiss-Wright Corporation (NYSE: CW) is a global integrated business that provides highly engineered products, solutions and services mainly to Aerospace & Defense markets, as well as critical technologies in demanding Commercial Power, Process and Industrial markets. We leverage a workforce of approximately 8,600 highly skilled employees who develop, design and build what we believe are the best engineered solutions to the markets we serve. Building on the heritage of Glenn Curtiss and the Wright brothers, Curtiss-Wright, headquartered in Davidson, North Carolina, has a long tradition of providing innovative solutions through trusted customer relationships. For more information, visit www.curtisswright.com.

This press release contains forward-looking statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 that are based on management's beliefs and assumptions. Such statements, including statements relating to Curtiss-Wright Corporation's expectations of future performance of our canned motor pump products, the continued relationship with an existing customer, the successful implementation and the success of this subsea program and future opportunities associated with this program, are not considered historical facts and are considered forward-looking statements under the federal securities laws. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Such risks and uncertainties include, but are not limited to: a reduction in anticipated orders; an economic downturn; changes in competitive marketplace and/or customer requirements; a change in US government spending; an inability to perform customer contracts at anticipated cost levels; and other factors that generally affect the business of aerospace, defense contracting, marine, electronics and industrial companies. Please refer to the Company's current SEC filings under the Securities Exchange Act of 1934, as amended, for further information.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240212037847/en/

Jim Ryan

(704) 869-4621

jim.ryan@curtisswright.com

Source: Curtiss-Wright Corporation

What is the Technology Cooperation Agreement about between Curtiss-Wright Corporation and PETRÓLEO BRASILEIRO S.A. – PETROBRAS?

The agreement aims to design, manufacture, test, and provide operational support for a Subsea Canned Motor Boosting System to be deployed mudline at a Petrobras production field in the Campos Basin, Brazil.

What technology is Curtiss-Wright leveraging for the subsea boosting system?

Curtiss-Wright is utilizing its canned motor technology for the subsea boosting system.

What is the expected benefit of the Subsea Canned Motor Boosting System?

The system is expected to reduce unplanned outages and production interruptions, offering an effective and reliable alternative to current subsea pump technologies.

Where is the design, manufacturing, and water-based testing taking place for the Subsea Canned Motor Boosting System?

The design, manufacturing, and water-based testing are happening at Curtiss-Wright's facility in Cheswick, Pennsylvania, with multiphase testing scheduled at a facility in Brazil.

When is the first Subsea Canned Motor Boosting System expected to be ready for operation?

The first system is anticipated to be operational in 2027.