Petrobras driving ultra-deepwater rig demand

(OM) Petrobras has been a key driver of a tightening ultra-deepwater rig market, accounting for more than a quarter of all term floater contracts over the past two years, according to Evercore ISI’s latest Offshore Oracle report.

From a rig count of 19 currently (up from 17 a year ago), Petrobras’ rig count is expected to increase by six over the coming year. Petrobras has six tenders outstanding for up to eight floaters for Brazil and one for Colombia worth ~24 years of work.

The report noted that Petrobras is executing on its plans to revitalize mature Campos basin assets and develop key presalt fields to grow production by 0.5 MM boe/d by 2027. Approximately 83% of its $78 billion five-year budget has been allocated for E&P, with spending based on a projected long-term Brent price of $35/bbl.

Petrobras recently signed an MOU with Shell to identify potential upstream opportunities and share best practices in reducing carbon emissions, with the five-year agreement accelerating exploration in the presalt and Equatorial Margin while targeting renewables and CCUS opportunities.

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