Petróleo Brasileiro S.A. has signed a $1.7-billion agreement to convert four VLCC vessels into hulls for platforms P-74, P-75, P-76, P-77, and for the transfer of rights areas.

SBM Offshore has contracted Blue Water Shipping to provide logistics for materials and equipment to yards in China and Brazil, where conversion of the FPSO Cidade de Ilhabela will take place over the next two years.

Sete Brasil Participações S.A. has signed a letter of intent with Keppel Offshore & Marine Ltd. to design and build five semisubmersible drilling rigs for $4.12 billion.

Exploration drilling should resume in mid-year on the Guyane Maritime permit off French Guiana, according to Wessex Exploration.

SBM Offshore has contracted for a 20-year charter and operation of the FPSO Cidade de Ilhabela.

BG Group has initial approval from the Brazilian Development Bank (BNDES) for up to $1.8 billion of long-term finance for the company’s interests in presalt Santos basin.

BG Group (BRGYY.PK:OCQX) says the first permanent FPSO on the Lula field in the Santos basin off Brazil has to date produced 15 MMboe in total from three wells, with a fourth due to be added in 2012.

Petrobras has detected a production string rupture at the FPWSO Dynamic Producer.

Cordiant Capital Inc. is supporting the construction of a deepwater drillship by the Schahin Group.