Petrobras Contracts Extended for Subsea 7 IRT

Subsea 7's IRT (Integrated Remote Technologies) division has received two contract extensions from Petrobras for the continued provision of Remotely Operated Vehicle (ROV) services onboard Petrobras chartered drill rigs Amethyst and Atlantic Star. The contract for the Amethyst has been extended to the first quarter of 2007 whilst the Atlantic Star contract will run until the end of this year. Contracts are valued at approximately $2 million and $900,000 respectively.

Located in the Campos Basin, Brazil, the drilling rig Amethyst has a Diablo 3 ROV onboard. This ROV has now accumulated more than seven years of continuous work. The vehicle's initial mobilization was onboard the drill rig Peregrine 1 in December 1997 and transferred to the Amethyst three years ago. Since mobilization onboard the Amethyst, the vehicle has had 99.9% operational uptime in water depths down to 1200 meters.

The Diablo 2 ROV onboard the Atlantic Star was initially mobilized in June 2004 to support the drilling activities on two well programs but the contract has now been extended until the end of 2005. Diablo 2 began its activities in 1997 as a support ROV for the maintenance and repair of fiber optic cables, before spending five years on the drill rig Louisiana and four months on the drill rig Ocean Yorktown in the Campos Basin in Brazil. Since being mobilized onboard the Atlantic Star, the vehicle has had an operational uptime of 99.6% in water depths to 400 meters.

Bill Boyle, Subsea 7 IRT's recently appointed Vice President, commented "These contract extensions are great news for our operations in Brazil. Our excellent operational performance was a significant factor in Petrobras' decision to extend both contracts. We have many highly skilled professionals in the company, which is the differentiating factor in our remote technology engineering and operational excellence worldwide".