Malaysian and Norwegian Joint Venture Land $2.7 Billion Brazilian State Oil Contract From Petrobras

A Petrobras Oil platform is seen at Guabanara bay in Rio de Janeiro — A Petrobras oil platform at Guabanara Bay in Rio de Janeiro REUTERS

Malaysia's SapuraKencana Petroleum Berhad (MK:SAKP) and the Norwegian Seadrill Limited (OSE:SDRL) won a $2.7 billion oil contract from Brazilian state oil giant Petroleo Brasiliero (Petrobras) S.A. (NYSE:PBR) on Thursday after public bidding, the Malaysian company says.

The eight-year contract is for the two companies' equally split joint venture to build and operate three deepwater support vessels, which can lay flexible oil pipelines up to 3,000 meters underwater.

The three vessels will be built outside Brazil and are scheduled to start operations in 2016. The contract could be extended for another eight years.

SapuraKencana also won a November 2011 state contract from Petrobras to build three similar vessels. Revenue from this latest contract is expected to benefit SapuraKencana in 2016.

Energy