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Petrobras Signs $175 Million Financing Deal With Marubeni Corporation

May 23, 1995

RIO DE JANEIRO, Brazil (AP) _ The state oil monopoly Petrobras has signed a $175 million financing deal with Marubeni Corp. of Japan, the government said Tuesday.

The money will go to converting a drilling platform in the oil-rich Campos Basin off the Rio state coast for use as a semi-submersible platform, Petrobras said.

The finance deal runs for 10 years. Funds to be released in stages during the conversion program. Interest is floating and based on the London inter-bank offered rate.

Braspetro Oil Services, a Petrobras subsidiary, managed the deal. A consortium formed by Industrias Verolme Ishibras and Sade Vigesa, which won the contract at international auction, will convert the platform.

The production capacity of the new platform will be 100,000 barrels a day of crude oil and 2 million cubic meters of natural gas, and will enter service in June 1997, the company said.

About 55 percent of Brazil’s domestic oil comes from the continental shelf in the Campos Basin. The 217,000 square-mile area has known reserves of about 500 million barrels. Brazil has oil reserves estimated at 2.2 million barrels.

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