Brazilian state-owned energy company Petrobras has agreed a deal with drilling contractor Transocean to use five of its drilling platforms in a deal worth just under $1 billion.

Houston-headquartered Transocean said that Petrobras will sign contracts worth $985 million within the next two months for the use of five of Transocean’s drilling facilities off the Brazilian coast. The contracts are worth a cumulative 19 year duration. Further earnings could be realized performance bonus opportunities and client reimbursables, Transocean said in a statement.

The contracts were approved for the drillships Deepwater Navigator and Peregrine I and semisubmersible rigs Sedco 707, Sedco 710 and Transocean Driller. Each rig is currently located in Brazil and all of the units with the exception of the Peregrine I are currently already under contract to Petrobras.

The Deepwater Navigator will be contracted for a four-year term commencing in October 2006. Estimated revenues of $263 million could be generated over the operation period. A three-year contract was approved for the Peregrine I to commence in November 2005. Estimated revenues for Peregrine I are $123 million.

Sedco 707 has been contracted for four-years and should commence in January 2006. Estimated revenues of $263 million could be generated over the four-year contract period. A four-year contract for the Sedco 710 should commence in October 2006 and deliver revenues of $175 million.

Finally, Petrobras will have a four year contract for Transocean Driller, which is expected to commence in August 2006. Estimated revenues for Transocean Driller are approximately $161 million.