This excerpt taken from the PBR 6-K filed Jun 2, 2008.
Contracting of drilling rigs
(Rio de Janeiro, May 30, 2008). PETRÓLEO BRASILEIRO S.A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA, BCBA: APBR/APBRA], a Brazilian international energy company, announces that its Executive Board yesterday approved the contracting of 12 drilling rigs on a charter party basis for use in ultra-deep waters (between 2,400 and 3,000 meters of water depth).
Of the 12 rigs to be contracted, 10 will be the property of Brazilian companies. Due to the lack of capacity in Brazilian shipyards, the 12 rigs will be built overseas and delivered for operation by the middle of 2012.
These 12 units are part of the first phase of the plan for contracting 40 drilling rigs all of which will be operational by 2017, as already announced. The next lot of rigs are to be built in Brazil, implying major investments in infrastructure to ensure that Brazilian industry has the capacity to compete in price and quality, manufacturing the equipment in accordance with the international standards required by the leading oil and gas companies.
The forecasted investments are part of Petrobras exploratory portfolio and production development. They are a key element in the implementation of initiatives that will guarantee growth in the production of oil and natural gas as envisaged in the Companys Strategic Plan.
This document may contain forecasts that merely reflect the expectations of the Companys 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.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: May 30, 2008
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 occur. 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.