Jurong of Singapore and Brazilian company Fels Setal are vying for the contract to build the 'P-50' platform, which will be installed offshore in the Campos Basin and when completed will have capacity to produce 180,000 barrels per day.

Petrobras' services director Irani Varella said political pressures were mounting to chose the Brazilian firm. Although he guaranteed Petrobras' decision would be based on technical merit, Mr Varella said companies should be influenced by corporate concerns and not political.

Mr Varella could not say when the platform, which will be installed in the Albacora Leste field in Brazil's biggest oil-producing area would start operating

Separately, Rio de Janeiro's legislative assembly last week approved a bill that would force locally installed oil firms to pay a tax of 18 percent on platforms that are built outside Brazil and brought into Rio state.

Currently, the tax is only charged on platforms constructed within the country. Rio state Governor Benedita da Silva has 15 days to sanction or veto the law. Oil officials and analysts said the law, if implemented, could have a negative impact on the state's oil industry, which is responsible for 80% of national production.