Petrobras and Sevan Finalize Drilling Contract

Petrobras America Inc. and Sevan Drilling Pte. Ltd, a 100% Sevan-owned company, have signed the drilling contract for the Sevan Driller for the US Gulf of Mexico. The contract was previously announced on September 19, 2006.

The drilling contract has a duration of six years and is expected to commence in the first quarter of 2009. Revenues which could be generated over the six year period are approximately US $880 million, including a bonus arrangement and mobilization fee.

The Sevan Driller is designed to include the most advanced drilling capabilities in the industry, based on Sevan's own patented technology. It will have a capacity of drilling of wells up to 40,000 feet in water depths of up to 12,500 feet, a variable deckload of more than 15,000 metric tons and high storage capacity of bulk materials. The rig will be equipped with an internal storage capacity of up to 150,000 barrels of oil.