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Petrobras Signs $775m Rig Deal

Maritime Activity Reports, Inc.

January 14, 2004

The consortium of FELS Setal SA, a subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M) in Brazil, and Technip Engenharia S/A (Technip), an affiliate of Technip S.A., has been awarded the P-52 contract from Petrobras Netherlands BV (PNBV).

Recently signed was a$775 million contract to build the semi-submersible production platform. Delivery of the floating production unit is due in 41 months for possible deployment in the Roncador field, a deepwater location of the Campos Basin, off the north coast of the State of Rio de Janeiro, Brazil.

The project involves the detailed engineering, procurement and construction of an 180,000 bpd semi-submersible production platform capable of operating in water depths up to 1,800 m.

The management, construction interface and procurement activities of the project will be shared (75%/25%) by the FELS Setal/ Technip Consortium operating out of offices in Rio de Janeiro.

Technip will be responsible for the overall engineering and detailed engineering of the deckbox and offshore mating and transportation. Keppel FELS will be performing the detailed engineering and construction of the lower hull from one of its yards in Singapore. FELS Setal will undertake the construction of the deckbox, the complete topside and accommodation at its facilities in Angra dos Reis, with module fabrication at its facilities in Niteroi. It will also handle offshore activities such as commissioning and pre-operations start-up.

"P-52 will assist to establish FELS Setal as a key supporter of Brazil's effort to increase oil output from Campos Basin and other Brazilian oil fields with significant local content. With the use of Technip's e-procurement, P-52 will reinforce Technip's commitment to the Brazilian industry, by promoting Brazilian suppliers on Technip's world-wide projects.

FELS Setal occupies approximately 360,000 sq. m., complete with full facilities in Angra dos Reis. Its other yard in Niteroi is an established topsides fabricator. Its fabrication base in Macae caters to the repairs and maintenance of offshore rigs in the Campos Basin.

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