Singaporean rig builder Keppel Corp. (BN4.SG) Friday said that its offshore & marine unit Keppel FELS and its joint venture partner J. Ray McDermott have signed a letter of intent contract with Brazilian state-run energy giant Petroleo Brasileiro (PBR), or Petrobras, and Chevron Corp. (CVX) for an oil platform in Brazil.

"The contract is expected to be signed at a later date," Keppel said in a statement.

Keppel FELS and J. Ray McDermott have formed a separate joint venture company called FloaTEC, LLC and are bidding for the P-61 oil platform contract which is estimated to be worth US$1.1 billion.

A Keppel spokesperson said that signing of the letter of intent didn't mean that FloaTEC has got the contract for building the rig. Instead, it's only an expression of interest by Petrobras to work with FloaTEC once the P-61 project has been sanctioned.

This is expected to be Petrobras' first Tension Leg Platform, or TLP, installed at a Brazilian offshore oil field.

The integrated platforms, which include drilling and production equipment, are seen by the company as a key way to cut development costs - especially in the subsalt region.

-By P.R. Venkat, Dow Jones Newswires; +65 64154 152; venkat.pr@dowjones.com