Bradesco Lands Insurance Contract with Chevron

Brazilian insurer Bradesco Auto/RE has signed a contract with US oil company Chevron (NYSE: CVX) to provide US$1.4 billion in coverage for the construction and installation of a 100,000-b/d floating production, storage and offloading (FPSO) vessel in the deepwater Frade field, Bradesco Auto/RE said in a statement.

Bradesco Auto/RE, an insurance division of Brazilian private sector bank Bradesco (NYSE: BBD), did not reveal how much Chevron would pay in annual premiums. The maximum claim amount is US$950 million, and an adjacent civil liability policy has a maximum claim amount of US$50 million, local press reported.

Frade is in the Campos basin at water depths of 900-1,200m and 121km from the Rio de Janeiro coast. Chevron's Brazilian unit is operator with a 51.74% stake, while federal energy company Petrobras (NYSE: PBR) holds 30% and Japanese consortium FJPL has 18.26%.

Production is scheduled to begin in early 2009 after total investment of US$2.40 billion.

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