Petrobras Inks Deal for FPSO on Piranema Field

Petrobras has entered into a Memorandum of Understanding with Sevan Marine do Brasil Ltda, a subsidiary of the Norwegian company Sevan Marine, for the use of Sevan Marine's SSP300 platform in the Piranema Field under a long-term contract. The Piranema field is located offshore of Sergipe State, 37 kms from the city of Aracaju.

The platform is a FPSO (Floating, Production, Storage and Offloading), which will be available and ready for operation in mid-2006. The final negotiations will commence shortly, with a view to entering into a definitive agreement, subject to both boards approval.

The light oil to be produced, 40 degrees API, is located in water depth of 1000- 1600 m. The FPSO has production capacity of 15 thousand barrels/day. The platform chartering is in line with the objectives established in Petrobras' Strategic Plan of reaching a production of 150 thousand barrels/day of light oil by 2006.