Petrobras Begins Bidding Process for Platforms P-51 and P-52

Petrobras reports that it is starting the bidding process for the contracting of construction of semisubmersibles platforms P-51 and P-52, to be installed in the Campos Basis, in the gigantic Marlim Sul and Roncador fields, respectively.

The point of starting the bidding processes at this time is so that the platforms P-51 and P-52 become operational by the second half of 2005, thus contributing to the Company's goal of producing 1.9 million barrels of petroleum per day in that year. Each platform will be capable of producing 180 thousand barrels of petroleum per day.

The two platforms will be contracted through three simultaneous and supplementary auctions: one for the construction of the electricity generation modules, and the other for the construction of gas compression modules and a third for the construction of the hull and production facilities.

For the first two bidding rounds, all of the companies that globally supply electricity and gas compression equipment in the specifications required for P-51 and P-52 are being invited to participate.

The third bidding round has the intent of preparing an executive project, the construction and assembly of the hulls and processing plants of the two platforms, as well as the integration between the hull, the processing plant and the gas compression and energy generation modules. National and foreign engineering and construction companies with the experience in enterprises similar to what is described above are being invited.

That bid round will obligatorily have different winners for each platform. In the judgment of the commercial proposals of the last bid round, the possible financial benefits for Petrobras that can be offered by the proponent will be considered. The bidding competitors for the bid rounds have until December of this year to present their proposals. Winners will only be declared in the first quarter of 2003, following the conclusion of the technical and commercial evaluation phases for the proposals that are presented.

The construction costs for these platforms represents close to one third of the total investment anticipated for these production development projects for the gigantic Marlim Sul and Roncador production fields.

For each month that these units delay in becoming operational, Petrobras loses revenue on the order of 100 million dollars per platform. Meeting the deadlines for executing these projects is fundamental for assuring that Petrobras meets its petroleum production goal of 1.9 million barrels per day, in 2005.