Brazil's state-run BNDES development bank is loaning national oil firm Petrobras $378 million to help it build its planned P-52 offshore oil rig, the bank said on Friday.The loan, which was negotiated over almost two years, was contingent on state-owned Petroleo Brasileiro (Petrobras) using the cash to pay domestic suppliers.

The total cost of the P-52 rig is $895 million and is part of Petrobras' planned $2.4 billion investment in three new oil platforms.

The loan will carry an interest rate of Libor plus 2 percent, with total cost estimated at 5.4 percent per year and amortization in up to 10 years from when the rig starts operation, the National Economic and Social Development Bank (BNDES) said.

The P-52 rig is scheduled to start operating in 2006 in the Campos basin and handle production of 180,000 barrels per day of oil and gas.

(From Reuters, November 26, 2004)

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