Mitsui & Co., Ltd. ("Mitsui") announced today that Mitsui and Petroleo Brasileiro S.A. ("Petrobras") have agreed to start deepwater drilling services with ultra-deepwater drillship ("Drillship") through P&M Drilling International B.V. ("Company"), an operating vehicle established by Mitsui and Petrobras at 50/50 stake.
The Company will own the Drillship scheduled to be delivered in the 2nd quarter of year ending March 2010. Total project cost is approximately US$750 million and a part of the cost will be financed by syndicated lenders. Petrobras is using the Drillship for ultra-deepwater oil exploration. To operate and maintain drillship services, subsidiary of Transocean Inc., a leading drilling service operator will be assigned.
Since the mid-90'-s, Mitsui has provided variety of financial arrangement for capital investment of Petrobras as well as collaboration with Petrobras to develop oil production field by providing facilities such as floating production storage and offloading ("FPSO") system. Under circumstance of higher demand of deep-sea oil exploration worldwide, Mitsui, together with Petrobras, seek opportunities of new explored interest, leveraging this joint operation.
This press release includes forward-looking statements about Mitsui. These forward-looking statements are based on the current assumptions and beliefs of Mitsui in light of the information currently available to it, and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. The risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest annual report on Form 20-F, which has been filed with the U.S. Securities and Exchange Commission.
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