Constellation

completed

Brazil’s national oil company, Petrobras, has announced plans to invest a total of US$174 billion over the period 2009-2013 to help meet the growing demand for energy in the country and the region. To maximize the economic impact of such investment, Petrobras has sought to increase local private sector participation and involvement by setting local content requirements in its drilling contracts. These requirements are expected to spur industrial activity and linkage opportunities in-country through the establishment of new shipyard and rig related infrastructure and equipment services. In response to the opportunities presented by Petrobras’ plans above, Constellation Overseas, Ltd. (“Constellation,” the “Company”), the oil services subsidiary of the Queiroz Galvão Group (QG) and an existing IFC client, intends to expand its oilfield drilling services business by acquiring additional offshore drilling assets that would allow it to participate in Petrobras’ drilling program that is an integral part of the latter’s plan to develop significant oil reserves discovered offshore Brazil. To achieve this, Constellation is raising equity to increase its capital base. The proceeds from this placement will be used for the construction and/or acquisition of drilling rigs, drillships and/or floating production, storage and offloading facilities (FPSOs).