Ocean Rig close to closing Mero

12/02/19

Petrobras and Ocean Rig will sign until the beginning of March the charter contracts for Deepwater Mikonos and Deepwater Corcovado, which will operate exclusively in the Mero field in the Santos Basin.

The contracting of the equipment will be submitted to the oil company’s board of directors approval on Thursday (14/2), almost three months after the drilling company presented the best prices in the bid launched by Petrobras in May last year.

The contracts will then be submitted to the Libra consortium partners (Shell, Total, CNPC and CNOOC) for a period of two weeks. Finally, they will have to be approved by the PPSA.

The commercial proposals for Mero’s bidding were opened in November. According to sources, Ocean Rig’s daily rate for the Deepwater Mikonos drilling rig, which will operate with MPD, was close to $ 235,000, while Deepwater Corcovado’s was about $ 215,000. Values ​​overturned offers from Seadril, Pacific Drilling, Ensco, and Maersk.

Deepwater Mikonos and Deepwater Corcovado will start operations in November, drilling development wells. Both are in Las Palmas, undergoing minor adaptation works to meet the contractual requirements of Petrobras.

The units operated until May exclusively on the BM-S-11 project, where the Lula field is located in the Santos cluster. With the end of the contracts, they were placed on a hot stack basis in the Canary Islands.

The rigs will be brought to Brazil between September and October. The expectation is that the process of acceptance of the equipment by the Brazilian authorities will be concluded between five and seven days.

The hiring of rigs marks Ocean Rig’s first business in Brazil after being acquired by Transocean in September, and the resumption and its local operations – since last May, the company has no rigs in the country. The merger has already been formalized, but for now, the company will be represented in Petrobras’ bids by Ocean Rig.

Ocean Rig rigs will replace the Seadrill contracts, which operate the West Tellus drill rig chartered until October, and West Carina, which left the project a few months ago, after two years of active duty.

The contracts do not contemplate a rate adjustment clause, in case the consortium chooses to extend the charter term. Deepwater Mikonos, which has a MPD requirement, will be chartered for the firm term of 550 days, with a renewal option for 815 days. The Deepwater Corcovado will be chartered for 629 days, with optional 680 days.

Source: Brazil Energy Magazine

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