American Electric Technologies Announces Strategic Alliance in Brazil

At today’s 2008 International Work Boat Conference, American Electric Technologies Inc., the premium supplier of custom-designed power delivery solutions for the traditional and alternative energy industries, announced it has entered into an alliance agreement with Five Star Services Ltda. of Macae, Brazil and Lifting Services Ltda. of Niteroi, Brazil. The newly formed AETI Alliance Group will provide full power distribution and control system design, manufacturing, and offshore services to the Brazilian offshore drilling and marine markets.

“Brazil’s state-run oil company Petrobras has recently announced that it intends to build 28 new drilling rigs and 122 Production Service Vessels (PSVs) in Brazil over the coming years as it expands its deep water operations. The ability to serve the Brazilian market locally is paramount to establishing market share in this rapidly expanding market,” said Beppe Askerbo, President Five Star Services.

To become the leading turn-key provider to the Brazilian market, the three companies have agreed to integrate their offerings and to begin the process to create a joint venture entity. AETI has allied with Lifting and Five Star Services to manufacture electrical switchgear and drives, and provide electrical services in Brazil. These products and services will be provided for oil and gas drilling, production and service vessels.

With the support of technology and manufacturing processes from AETI, the alliance will fabricate, assemble and test products in Brazil and deliver to local customers. These products will be commissioned and supported by local Brazilian technical service staff. Construction and installation services will also be available on a local basis. In addition, the alliance has the capability to fabricate steel modules and completely outfit drilling and marine electrical systems for cost effective installations.

Lifting Services Ltda. has provided maintenance, repair, installation, and fabrication services of electrical and electronic equipment for the offshore drilling and marine markets in Brazil for over 15 years. With DNV certification of ISO 9000/9001, Lifting’s customers include major oil/gas clients including Brasdril, Edison Chouest, Frontier Drilling, Halliburton, Maersk, Modec, Noble Drilling, Pride International, SBM, Schlumberger, Tidewater, Todco, and Transocean.

“Although we were approached by several U.S. companies, AETI’s experience in providing offshore marine and drilling power systems, coupled with their reputation for engineering excellence and their experience in successfully scaling international partnerships made them a perfect complement to our offshore services,” said Claudius Carvalhal, Managing Director, Lifting Services.

Five Star Services Ltda. is a leading services provider in the oil and gas market in Brazil, specialized in the off-shore sector, and providing services such as rig operations and drilling crew and manning services, performing maintenance, repairs and modifications to drilling equipment, load-carrying components and well-control equipment, performed at site or during dockings. Five Star also supplies engineering and construction of prefabricated solutions ranging from deck extensions and flare-booms to accommodation modules from its 53,000 square meter yard.