This excerpt taken from the PBR 6-K filed Sep 15, 2008.
Contracting FPSOs for the Pre-Salt
(Rio de Janeiro, September 15 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 the Executive Board has approved the contracting of 10 new FPSO-type (Floating Production Storage and Offloading) oil-production platforms for the Pre-Salt areas in the Santos Basin.
The two first FPSO platforms will be chartered by Petrobras from third-parties; they will have a high level of national content and will be destined for use in development pilot projects. Each units daily production capacity will be 100,000 barrels of oil and 5 million cubic meters of natural gas. The units will be installed between 2013 and 2014 in areas that are yet to be defined in the Pre-Salt area.
The eight other production units will belong to Petrobras, will have daily production capacities of 120,000 barrels of oil and 5 million cubic meters of natural gas per day, and will be installed during 2015 and 2016. They will be manufactured in series, beginning with the construction of the hulls at the dry dock of the Rio Grande Shipyard, in Rio Grande do Sul, which has already been leased by Petrobras for a term of 10 years. The production modules to be installed on the hulls will be defined in the future, after the pilot projects and the long duration tests are deployed.
These 10 FPSOs will operate in ultradeep waters, ranging from 2,400 to 3,000 meters from the waterline, and will be used to kick-off the definitive production system in the Pre-Salt area of the Santos Basin.
After the 10 FPSOs are deployed, major technological innovations developed by Petrobras will be introduced for the subsequent production development phases in the Pre-Salt area.
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: September 15, 2008
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