Pride wins Brazilian workProjects and Operations // February 9, 2001
Both rigs have been recently constructed in South Korea. The Pride Carlos Walter has been delivered by the shipyard and is currently in transit to Brazil. The Pride Brazil is undergoing final equipment commissioning and testing and is expected to be delivered by the shipyard in mid-February.
It is anticipated that the rigs will be ready to commence operations under the new Petrobras charters in May and June, respectively, of this year. Pride is to receive aggregate revenues of more than $500 million over the five-year term of the new contracts.
In addition, Pride has agreed to purchase the remaining interest in thetwo rigs in order to increase its ownership to 100%. Pride will purchase the61.7% interest owned by Maritima Petroleo e Engenharia Ltda for approximately$85 million, payable in a note convertible into Pride common stock. At thesame time, Pride will acquire the 11.9% interest owned by affiliates of FirstReserve Corporation for approximately 500,000 shares of common stock pursuantto the existing terms of the agreement governing First Reserve's investment inthe joint venture. The two transactions are expected to be completed withinthe next 30 days. The two rigs have associated financing arrangements forapproximately $300 million of the costs to construct the two rigs.