Contracting of 12 ultra-deep water drilling units approved

30/5/2008

Petrobras’ board has approved the chartering of 12 drilling units designed for use in ultra-deep waters (2,400 to 3,000 meters). Ten of the 12 units will belong to Brazilian companies. Due to the lack of capacity among Brazilian shipyards to build them, all 12 units will be constructed abroad and delivered to begin operating by no later than mid-2012.

This is the first phase of the plan, which has already been announced, to build 40 drilling units to be in operation by 2017. The next units are expected to be built in Brazil, a fact that will demand major investments in infrastructure to allow the national industry to have competitive price and quality capacities to produce equipment in line with the international standards the major oil and gas companies demand.

The investments to be made in this program are part of Petrobras’ exploratory and production development portfolio and a relevant component of the actions that will ensure the increase in oil and natural gas production the Company’s Strategic Planning calls for.

Petrobras press release