Bidding countdown for Libra drilling rigs

11/13/18

Qualifying process enters the final stretch and price opening is expected for this week

The Libra consortium will open commercial bidding proposals this week to charter two drilling rigs for the Mero project, operated by Petrobras, in partnership with Shell, Total, CNPC and CNOOC. The expectation is that it will happen this Wednesday and that soon thereafter the commercial classification of the companies will be disclosed.

BE Petroleo has learned that the bidders are Ensco, Ocean Rig, Seadrill, Pacific Drilling, and Maersk. However, Petrobras will have to call only the two companies that obtain the best commercial classification, without revealing the price presented in the proposals.

The delivery of proposals took place in early October. Since then, Petrobras has been working with companies in the process of technical and legal qualification. This time, the oil company opted for the strategy of not disqualifying any tenderer for lack of document without first requesting supplementary information. Therefore, the attempt was to keep the largest number of companies in the process to increase competition.

The industry waits with great expectation to know the prices of the competition. The bet is that the daily rates come high, above the current market average, surpassing the level of US $ 200 thousand / day.

No rate adjustment

With a capacity of 3,000 m, the two Mero rigs will have to be available to start operations in December 2019. In addition, the two rigs will have to have two drilling towers, one of which must be equipped with MPD.

The two contracts do not contemplate a tariff readjustment clause, in case the consortium chooses to extend the charter term. Rig 1, which has MPD requirement, has a firm deadline of 550 days and a renewal option for another 815 days. The contract for the second unit is 629 firm days and 680 days optional.

The tender for the rigs for Mero was launched in early May. The delivery of proposals was scheduled for August, but the deadline was successively postponed by the Libra consortium.

Source: Brazil Energy

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