Brazil Schahin Inks $800M Loan To Build 2 Petrobras Oil Rigs

CARACAS, Nov 2, 2007 (Dow Jones Newswires)

Brazilian conglomerate The Schahin Group has inked an $800 million syndicated loan with more than 15 financial institutions, Japan's Mizuho Corporate Bank Ltd. said Friday.

Proceeds will be used to build two semi-submersible platforms which will be operated by The Schahin Group on behalf of Brazil's state-controlled oil company, Petroleo Brasileiro (PBR), or Petrobras, probably in the Campos basin, Mizuho said in a statement.

Mizhuo, part of the Mizuho Financial Group (MFG), coordinated the deal together with UniCredit, Standard Chartered Bank (STAN.LN), and WestLB. The 10-year loan was spread across more than 15 financial institutions, including the International Finance Corporation, the private-sector arm of the World Bank.

The transaction closed on Oct. 26, Mizuho said.

The two semi-submersible platforms are among the six platforms awarded by Petrobras to four Brazilian companies under a government-sponsored program, Mizuho said.

The platforms are designed to operate at water depths of up to 2,000 meters and 2,400 meters, respectively, each with a drilling depth of 7,500 meters below seabed, Mizuho said.

The rigs are being built by Singapore's Yantai Raffles Shipyard Company at its shipyard in China, with delivery scheduled in 2009 and 2010, respectively.

The oil rigs will be owned by one Schahin subsidiary, Black Gold Drilling, and will be operated under five and seven-year contracts with Petrobras by another unit, Schahin Engenharia SA, it said.

Mizuho said it has closed financing for three semi-submersible platforms so far in 2007, with an aggregate project value of $1.5 billion.

Copyright (c) 2007 Dow Jones & Company, Inc.