Petrobras uneasy with aspects of Sete restructuring -sources

sete

State-controlled Petróleo Brasileiro SA is growing uneasy with some aspects of the business reorganization of ailing oil-drilling-rig builder Sete Brasil Participações SA, a situation that may pose risks on the refinancing of $3.8 billion in debt, two sources said on Monday.

Officials at Petrobras, as the oil company is known, are questioning technical aspects of Sete Brazil’s reorganization, including how to proceed if legal limits on the rigs’ minimum local content are breached and the fines that a breach could generate, said the first source, who requested anonymity because of legal impediments to discussing the issue publicly.

According to both sources, Petrobras’ stance on some of those aspects marks a shift from views expressed in May when Sete Brasil presented the reorganization plan. The sources also said that neither the number of rigs that Sete Brasil agreed to build under the new business plans or the cost of daily lease charge, or “day rate” to Petrobras are keeping the parties at odds.

Petrobras owns 9 percent of Sete Brasil and plans to lease all of its drillships.

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