HOUSTON, Oct. 4 /PRNewswire/ -- R&B Falcon Corporation (NYSE: FLC)
announced today that R&B Falcon Drilling (International & Deepwater) Inc. has
received a letter of intent from Petroleo Brasileiro S/A-PETROBRAS for a
two-year contract for the DP drillship "Deepwater Frontier" for operations
offshore Brazil in up to approximately 8,900 feet of water.
The "Deepwater Frontier", capable of drilling in up to 10,000 feet of
water, is owned 60 percent by R&B Falcon Corporation and 40 percent by Conoco.
The vessel will sail to Brazil upon completion of its current one-well
commitment in West Africa, and thus operations for PETROBRAS are expected to
begin in November 1999. The current well underway in West Africa and the
PETROBRAS work will essentially complete all of R&B Falcon's 2.5-year drilling
contract obligation with respect to the "Deepwater Frontier" pursuant to the
rig sharing agreement with Conoco.
Paul B. Loyd, Jr., R&B Falcon Corporation Chairman and Chief Executive
Officer, said: "We are very pleased to have the opportunity to expand our
valued relationship with PETROBRAS with the award of this high-specification,
ultra deepwater work. PETROBRAS' choice of the "Frontier" for their ultra
deepwater exploration program recognizes the outstanding performance
demonstrated by the vessel in its first very challenging drilling environment
in New Zealand and its early availability following its work in West Africa.
We were also very pleased to see the strengthening in the ultra deepwater
market illustrated by the fact that no other company chose to compete for this
work. Furthermore, the strong project financing secured for the "Frontier",
combined with on-time, on-budget construction, allowed us to negotiate this
contract with positive net cash flow to R&B Falcon."
R&B Falcon Corporation operates the world's largest fleet of marine-based
drilling rigs servicing the international oil and gas industry. Its fleet is
composed of 135 marine-based drilling units including the industry's largest
fleets of barge and jackup rigs, and a fleet of semisubmersibles and
drillships which is among the most capable in the world. R&B Falcon also
provides turnkey and integrated services and operates mobile production units,
internationally based land rigs and an offshore towing business.
SOURCE R&B Falcon Corporation
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CONTACT:
Charles R. Ofner of R&B Falcon Corporation,
281-496-5000
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