Sevan contracted for Petrobras newbuild drilling unit

Petrobras and a subsidiary of Sevan Drilling have signed a firm drilling contract for a newbuild drilling unit intended for operations off the coast of Brazil, in water depths down to 2,400 m (7,874 ft).

Offshore staff

OSLO -- Petrobras and a subsidiary of Sevan Drilling have signed a firm drilling contract for a newbuild drilling unit intended for operations off the coast of Brazil, in water depths down to 2,400 m (7,874 ft).

The drilling contract will have a fixed term of six years with start-up by end-2011. Revenues, which could be generated over the six-year period, are approximately $975 million, including a bonus arrangement and mobilization fee, the company says.

Sevan has awarded a letter of intent (LOI) to the Cosco Shipyard Group for a turnkey contract comprising the construction, equipment procurement and installation, and commissioning of the drilling unit. Aker Kvaerner MH has been awarded an LOI for delivery of the drilling package.

The newbuild drilling unit is based on Sevan's proprietary cylindrical Sevan 650 design.

08/05/2008

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