Petrobras Approves Contracting Of Drilling Rigs

Petrobras says that its Executive Board has approved the contracting of 12 drilling rigs on a charter party basis for use in ultra-deep waters (between 2,400 and 3,000 meters of water depth).

Of the 12 rigs to be contracted, 10 will be the property of Brazilian companies. Due to the lack of capacity in Brazilian shipyards, the 12 rigs will be built overseas and delivered for operation by the middle of 2012.

These 12 units are part of the first phase of the plan for contracting 40 drilling rigs all of which will be operational by 2017, as already announced. The next lot of rigs are to be built in Brazil, implying major investments in infrastructure to ensure that Brazilian industry has the capacity to compete in price and quality, manufacturing the equipment in accordance with the international standards required by the leading oil and gas companies.

The forecasted investments are part of Petrobras’ exploratory portfolio and production development. They are a key element in the implementation of initiatives that will guarantee growth in the production of oil and natural gas as envisaged in the Company’s Strategic Plan.