Petrobras board examines the chartering of two drilling rigs

12/28/18

Petrobras’ technical area closed a report suggesting the hiring of Ocean Rig to charter two rigs for the Mero project. The document was finalized by the bidding committee a little over a week ago. It will then be forwarded to the oil company’s board of directors for approval at the first meeting of the board in January.

The Libra consortium’s forecast is that the contract with Ocean Rig, recently acquired by Transocean, will be signed in March. The company presented the lowest prices in the bidding conducted by the consortium, offering the drilling rigs Ocean Mikonos and Ocean Corcovado, with daily rates around around US $ 270 thousand.

The Libra consortium concluded negotiations with Ocean Rig about two weeks ago. After approval by Petrobras, the process will be submitted to the boards of partners Shell, Total, CNPC, CNOOC and also PPSA. The two rigs will operate in the field of Mero, from November of 2019, drilling development wells.

Ocean Rig proposals have slashed offers from Seadril, Pacific Drilling, Ensco, and Maersk. Prices were opened in November.

Works of adaptation

Ocean Mikonos and Ocean Corcovado operated until May with exclusive dedication to the BM-S-11 project in the Santos cluster and have since moured in Las Palmas on a hot stack basis. The units will need to undergo minor adaptation works to meet the contractual requirements of the Libra consortium, which will be carried out at a shipyard in the region.

Ocean Mikonos will operate with MPD. The two rigs will replace the Seadrill contracts, which operate the West Tellus drill rig chartered until October, and West Carina, which left the asset a few months ago, after two years acting exclusively in it.

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 rig is 629 firm days and 680 days optional.

Following the signing, Ocean Rig will have five contracts, two in Angola, one in Norway and two in Brazil.

Source: Brasil Energia

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