Offshore staff

Keppel Shipyard Ltd. has entered into an agreement with Charter Development Ltd. Liability Co., a special purpose company of ABN Amro Bank's Brazilian unit, for the hull conversion of a floating production unit for $174 million.

Work includes marine conversion plus the fabrication and integration of the internal turret on the 322,446 dwt tanker, theVLCC Settebello. The turret will hold 75 risers and will be the largest turret ever fabricated and installed, according to Keppel. Petrobras will name the FPU P-53 (Petrobras 53) when it is completed in 4Q 2006.

Petrobras will tow the converted FPU to a CDC topside contractor yard in Brazil for installation and integration of the topside modules.

Petrobras will charter theP-53 from CDC for the Marlim Leste field in the Campos basin.

Petrobras will install theP-53 in 1,080 m water depth. The unit will process up to 180,000 b/d, compress 6 MMcm/d, and inject 390,000 cm/d of water.

6/02/05