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Petrobras contracts two new-build Ultra-deepwater rigs

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(Rio de Janeiro, September 20, 2006). – PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA, BCBA: APBR/APBRA], a Brazilian international energy company, announces that has contracted two ultra deepwater rigs for its drilling operations in the Gulf of Mexico, through its wholly owned subsidiary Petrobras America Inc., based in Houston (TX).

The first contract was signed with Larsen Oil Company, with a 5 years term, for the semi-submersible PetroRig 1, capable of drilling 35,000 feet wells in 10,000 feet water depth. The second is a 6 years contract with Sevan Marine ASA for the SSP Sevan Driller that will be capable of drilling wells up to 40,000 feet deep, in water depth of up to 12,500 feet.

Currently both rigs are under construction and are expected to start operations in the Gulf of Mexico on the first quarter of 2009. The design of these rigs includes state of the art drilling technology to optimize drilling and completion operations in the Gulf of Mexico.

With these contracts, Petrobras consolidates its position as one of the leading players in the ultra deep waters of the Gulf of Mexico, benefiting from its deepwater expertise and technology developed offshore Brazil. These new rigs will provide Petrobras with sufficient offshore drilling capacity to ensure the objectives in the Company’s Business Plan are met.

http: //www.petrobras.com.br/ri/english

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Contacts:

	Petróleo Brasileiro S.A – PETROBRAS
	Investor Relations Department
	Raul Adalberto de Campos– Executive Manager
	E-mail: petroinvest@petrobras.com.br
	Av. República do Chile, 65 - 22nd floor
	20031-912 – Rio de Janeiro, RJ
	(55-21) 3224-1510 / 9947

 

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This document may contain forecasts that merely reflect the expectations of the Company’s management. Such terms as “anticipate”, “believe”, “expect”, “forecast”, “intend”, “plan”, “project”, “seek”, “should”, along with similar or analogous expressions, are used to identify such forecasts. These predictions evidently involve risks and uncertainties, whether foreseen or not by the Company. Therefore, the future results of operations may differ from current expectations, and readers must not base their expectations exclusively on the information presented herein.

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This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates offuture economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually oc cur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.

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