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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Big Dog who wrote (52346)	10/4/1999 12:06:00 PM
From: paul feldman	Read Replies (2) \| Respond to of 95453

R&B Falcon Corporation Announces a Commitment for the DP Drillship 'Deepwater Frontier' October 4, 1999 11:46 AM HOUSTON, Oct. 4 /PRNewswire/ -- R&B Falcon Corporation 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