After filing for bankruptcy protection and making the best bid for a rig, the company is very close to securing its first long-term contract with Petrobras
Constellation is very close to working for Petrobras, the former company QGOG (Queiroz Galvão Oil and Gas) offered the lowest price in the Brazilian state-owned company's tender for the charter of a rig with a capacity of 2,4 m to drill in the BM- S-11, in the Santos Basin.
The victory comes at a good moment for the company, right after its request for judicial recovery and the dispute was with large companies, such as Ensco, Transocean/Ocean Rig, Seadrill, Petroserv and Pacific Drilling.
Despite the lack of information from both Petrobras and Constellation, there is speculation in the market that the daily rental rate presented was around US$ 160 and that the duration of the contract will be two years, with the possibility of extending for the same period.
Constellation had offered two rigs from its fleet, the Laguna Star and the Amaralina Star, but the bidding committee asked that only one unit be indicated, the company then opted for the Laguna Star.
The drillship in question, however, is contracted by Enauta (formerly QGEP), drilling in the Atlanta field, in the Santos Basin and the contract only expires at the end of the year.
This fact shouldn't be a problem for Constellation, because despite the announcement scheduling the rig's entry into operation for the end of August or 120 days after signing the contract, there is a great possibility that this date will be postponed to the end of the year.
History of Constellation while it was still QGOG
When it was still QGOG, the company had six rigs under contract with Petrobras, but the contracts ended and the last one ended in 2018, the same year in which it filed for bankruptcy.
Constellation currently has three short-term contracts with Total, Enjoy and Shell.
the bidding
The BM-S-11 is operated by a consortium formed by Petrobras (65%), Shell (25%) and Petrogal (10%), and the dispute had Transocean/Ocean Rig offering the drillship Ocean Rig Apolo, which is in hibernation (cold stack).
Petroserv disputed the process with drillship Carolina, while Seadrill offered the drillship West Tellus, which is operating for Petrobras in Mero. Ensco, on the other hand, presented a proposal with the DS-11.
Until May 2018, two rigs, Ocean Mykonos and Ocean Corcovado, operated in the field by Ocean Rig, which resulted in the discovery of Lula and other fields.
