Transocean Inc. says that the board of directors of Petroleo Brasileiro S.A.(Petrobras) has approved contract awards for four of the company's rigs totaling 22 rig years and approximately $3.0 billion in combined estimated contract revenues.

Estimated contract revenues for each rig represent the maximum amount of revenues that may be earned in the applicable contract period, including revenues from a 15% additional rate, payable unless rig downtime exceeds 5 percent, and excluding revenues from cost escalation and demobilization. The approved contracts are expected to be executed by subsidiaries of Petrobras and Transocean in the next 30 to 60 days.

The contract approved for the Sedco 707, a dynamically positioned semisubmersible rig capable of operating in water depths of up to 2,000 meters, has a five-year term which is expected to commence in December 2009 following the completion of the rig's current contract commitments. Estimated revenues that could be generated over the five-year contract period are approximately $841 million.

The contract approved for the Deepwater Navigator, a dynamically positioned drillship capable of operating in water depths of up to 2,000 meters, has a five-year term which is expected to commence in March 2011 following the completion of the rig's current contract commitment. Estimated revenues that could be generated over the five-year contract period are approximately $801 million.

The contract approved for the Sedco 710, a dynamically positioned semisubmersible rig capable of operating in water depths of up to 1,200 meters, has a six-year term which is expected to commence in November 2010 following the completion of the rig's current contract commitment. Estimated revenues that could be generated over the six-year contract period are approximately $730 million.

The contract approved for the Transocean Driller, a moored semisubmersible rig capable of operating in water depths of up to 1,050 meters, has a six-year term which is expected to commence in August 2010 following the completion of the rig's current contract commitment. Estimated revenues that could be generated over the six-year contract period are approximately $680 million.

Tags: Petrobras, Transocean Inc.