Offshore staff

RIO DE JANEIRO, Brazil -- Petrobras has signed a master agreement with Nigerian LNG for provision of LNG. The agreement, signed in Barcelona, Spain, delineates the negotiation conditions with which the companies will comply when Petrobras has the demand for LNG.

In addition to the agreement with the Nigerian company, Petrobras signed a confidentiality agreement with Oman LNG for potential product supply negotiations.

Ildo Sauer, Petrobras Gas & Energy director, spoke about the company's initiatives in this area during a press conference held at the 15th International Conference & Exhibition on LNG. Sauer explained the negotiations held with Norway's Golar to charter vessels to supply gas to the LNG terminals in Rio de Janeiro and Ceará. Sauer also discussed the agreement signed with the Nigerian company. This negotiation aims to guarantee the supply of the vessels chartered from Golar.

The first vessel is expected to begin transporting LNG in April 2008 and the second in 1Q 2009. Sauer says Petrobras also is considering hiring one more vessel. "When in operation, they will add another 20 to 21 MMcm/d (706 to 742 MMcf/d) to the domestic gas supply. A third vessel may bring another 14 MMcm/d (494 MMcf/d)," he said.

4/26/2007