Petrobras extends deadline for BM-S-11 drilling rig

10/12/18

Petrobras has extended the tender offer date for chartering a 2,400 m drilling rig that will be allocated to the BM-S-11 project in the Santos Basin. The deadline was set for December 13, but the bidding committee transferred the date to December 27.

Postponement surprised the market. As Petrobras finalized the Mero rigs process informally, the expectation was that the bidding outcome would be announced and the opening of BM-S-11 proposals would be maintained, with no change in the date.

The bet is that the bidding of BM-S-11 has a big dispute. The charter contract has a two-year term, with the possibility of extension for an equal period, providing for renegotiation of the charter rate between the parties.

The BM-S-11 rig will have to be equipped with two towers. The company that offers unit with dual activity will receive from Petrobras a bonus score, whose matrix was not revealed in the public notice.

Petrobras is requesting the unit to start operating by April 2019, but due to the postponement of the proposal delivery date and the contract, the deadline is 120 days. Most likely is that the schedule will be changed possibly for the third quarter of 2019.

The charter of the new unit is intended to replace the Ocean Rig Ocean Corcovado and Ocean Mykonos rigs. The two operated on the project under an exclusive dedication regime and, since May, there is no equipment working in the area.

The BM-S-11 project is located in the deep waters of the cluster, where the Lula field and other fields were discovered. The unit is operated by Petrobras, which owns 65%, in partnership with Shell (25%) and Petrogal (10%).

In addition to this bid, Petrobras has another tender underway to charter a rig for operation in the so-called pool, with capacity to operate on a water depth of 2,000 m. The equipment is being contracted to operate along the coast without a defined location.

The unit is being requested for the next year and the delivery of proposals was rescheduled for  January 7.

Source: Brazil Energy

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