R&B Falcon Drilling Receives Letter Of Intent

Friday, October 15, 1999
R&B Falcon Drilling has received a letter of intent from Petroleo Brasileiro S/A Petrobras for a two-year contract for the DP drillship Deepwater Frontier for operations offshore Brazil in up to approximately 8,900 ft. (2,712 m) of water. Capable of drilling in up to 10,000 ft. (3,048 m) of water, Deepwater Frontier is 60 percent owned by R&B Falcon Corp. and 40 percent by Conoco. The vessel will sail to Brazil upon completion of its current one-well commitment in West Africa, with operations for Petrobras expected to begin in November 1999. These two projects will essentially complete all of R&B Falcon's 2.5 year drilling contract obligation with respect to the Deepwater Frontier pursuant to the rig sharing agreement with Conoco.
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