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Dresser-Rand To Provide Petrobras With Compression Equipment

Maritime Activity Reports, Inc.

February 21, 2002

A new floating production, storage and off-loading (FPSO) facility being built to extract oil and gas from offshore Brazil will include gas compression modules worth approximately $35 million from the Dresser-Rand Company. The FPSO, which will operate in the Petrobras Albacora Leste field, is anticipated to produce approximately 180,000 barrels of oil and 6.0 million cubic meters of gas a day. The compression equipment will be used for gas lift oil production as well as for gas transmission from the FPSO by pipeline to shore. Operation is expected to begin in September 2003. Dresser-Rand will provide three compression trains including DATUM high-efficiency centrifugal compressors driven by variable speed drive (VSD) electric motors, and a control room. The equipment will be configured as two single lift modules, one with two compressor trains, and the other with one compressor train.

Manufacturing of the compressors and string testing will be conducted at Dresser-Rand’s facility in LeHavre, France. In addition, the company will conduct full Class I hydrocarbon testing of the compression equipment. Each of the three compression trains will be shipped in late 2002 for delivery at the Port of Rio. Dresser-Rand will be responsible for the engineering, procurement of materials and construction of the gas compression modules in Brazil. The company also will manage the equipment commissioning and startup, as well as training Petrobras personnel.

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