Re Contract

ROLLS-ROYCE HOLDINGS PLC - Re Contract

PR Newswire

London, December 12

Rolls-Royce, the global power systems company, today announced an order worthmore than £100 million to supply integrated power and propulsion systems forseven offshore drilling vessels in Brazil.

The ships will be built at the Atlântico Sul shipyard for Brazilian oil companyPetrobras. Rolls-Royce will equip each of the seven vessels, which will satisfylocal content requirements, with six large thrusters and six Bergen dieselgenerator sets. Together, the systems will be used to propel the vessels to andfrom drill sites and to accurately maintain their positioning during drillingoperations.

Tony Wood, Rolls-Royce, President - Marine said: "We are delighted to announcethis significant order in Brazil for our new customer, Atlântico Sul. Thiscontract builds further on our strong reputation for innovation and technology,and on our market-leading position for power and propulsion systems in theoffshore drilling sector."

Petrobras' new drill ships will primarily support extraction from wells alongthe pre-salt layer, located 2,000-3,000 metres below the surface of theAtlantic Ocean, offshore Brazil.

Mr Otoniel Silva Reis, CEO, Atlântico Sul, said: "We look forward to workingwith Rolls-Royce on this project. Their vast experience and expertise inproviding highly innovative and reliable power and propulsion solutions,particularly in the mobile drilling sector, is a tremendous asset as we buildthese highly advanced drill ships for Petrobras."

In support of production activities around the world, Rolls-Royce has deliveredpropulsion systems for more than 140 mobile drilling units, with systems onorder for a further 30 units.

Additionally, 45 Rolls-Royce designed UT offshore supply vessels have beenbuilt in Brazil to support oil and gas exploration and production. A further 12vessels have been ordered, including four UT 775 SE platform supply vessels byBravante Group in late October.

Rolls-Royce has a long and successful relationship with Brazil dating back over50 years, with facilities in Sao Bernardo do Campo, Rio de Janeiro, Niteroi andMacae.

Rolls-Royce is further investing in Brazil and will open a new facility in 2013in Santa Cruz, Rio de Janeiro. This facility will be dedicated to the assemblyand testing of RB211 industrial gas turbines. The first batch of equipment tobe produced in Santa Cruz has already been ordered by Petrobras in aUS$650-million contract signed in 2011.

Notes to Editors:

1. Rolls-Royce is a world-leading provider of power systems and services foruse on land, at sea and in the air, and has established a strong position inglobal markets - civil aerospace, defence aerospace, marine and energy.

2. As a result of this strategy, Rolls-Royce has a broad customer basecomprising more than 500 airlines, 4,000 corporate and utility aircraft andhelicopter operators, 160 armed forces, more than 4,000 marine customers,including 70 navies, and energy customers in more than 80 countries.

3. Annual underlying revenue was £11.3 billion in 2011, of which more than halfcame from the provision of services. The firm and announced order book stood at£60.1 billion at 30 June 2012, providing visibility of future levels ofactivity.

4. Rolls-Royce employs over 40,000 people in offices, manufacturing and servicefacilities in over 50 countries. Over 11,000 of these employees are engineers.

5. In 2011, Rolls-Royce invested £908 million on research and development, twothirds of which had the objective of further improving the environmentalperformance of its products, in particular reducing emissions.

6. Rolls-Royce supports a global network of 28 University Technology Centres,which connect the company's engineers with the forefront of scientificresearch.

7. The Group has a strong commitment to apprentice and graduate recruitment andto further developing employee skills.

8. The Group is a leader in the provision of integrated power and propulsionsystems for vessels operating in offshore exploration and production; includingdrilling ships, mobile rigs, construction vessels and shuttle tankers.

9. Rolls-Royce has been present in Brazil for 50 years, and today has over 600employees in the country, including 100 employees at a marine service facilityin Niteroi.

For further information, please contact:

www.Rolls-Royce.com