Petrobras Hires PetroRig 2 for Work Offshore Brazil

Petrolia Drilling

Petrobras has signed a five year drilling contract for work offshore Brazil (2400m water depth) with Larsen Oil and Gas Ltd of Aberdeen Scotland for the new build deepwater semisubmersible, PetroRig 2.

Operations are scheduled to start in Brazil by December 2009. The rig is owned by PetroMENA AS and is being built at Jurong Shipyard in Singapore.

The gross value of the contract is about US $645 million excluding options.

Due to the award of this contract for PetroRig 2 this gives Larsen Oil & Gas with PetroMENA AS the opportunity to declare the third option to build a similar deep water semisubmersible drilling rig at Jurong shipyard with delivery in Q1 2010.

Larsen Oil and Gas Ltd also has a similar drilling rig named PetroRig 1 (3000 m. water depth), owned by PetroMENA AS and also under construction at Jurong Shipyard contracted by Petrobras America to drill in the Gulf of Mexico. In addition there are 2 heavy duty (375ft) jackups under construction at Jurong shipyard, owned by PetroJack ASA and managed by Larsen Oil & Gas, with delivery in 2008.

Petrolia Drilling ASA owns approx. 43.5% of the shares in PetroMena AS.