Lupatech Clinches $779MM Contract with Petrobras

Lupatech has signed two new contracts with Petrobras, with the approximated value of US $779 million (R$1.45 billion, as per the exchange rate of R$1.8654 per US dollar), to provide specialized offshore services related with well workover (intervention and recovery) and chartering of semi-submersible platforms.

For the Contracts execution it is planned the chartering of two semi-submersible platforms for the light workover operation in water depth of 1,100 meters to 2,500 meters, including services of risers completion, installation and de-installation of wet Christmas trees, installation of subsea equipments using ROV's (Remote Operated Vehicles), dissociation of hydrates and operations of coiled tubing, slick line and wireline in oil and gas wells, and also water injection wells.

The Contracts, in line with other services already provided by Lupatech, open new business opportunities for the Company to provide specialized technical services for the oil & gas sector, as well as its participation in the selective market of operations with service platforms of specialty services, adding pioneer technology with significant value added. The Contracts will use state-of-the-art technology solutions provided by Lupatech, emphasizing the application of fiberglass coating in pipes (liners).

The Contracts were originated in bidding won by a wholly owned subsidiary of the Company, Lupatech Equipamentos e Serviços para Petróleo  (formerly Gasoil Servicos) on December 2, 2009 and are divided into lot A and lot B.

Lupatech will perform the services in concession areas of Petrobras in Brazilian waters (offshore), with a tenor of five (5) years from the beginning of operations, being possible to renew the Contracts for five (5) more years.