Two semi-submersibles and a pair of drillships for sale with bids expected on February 28 will help Sete Brasil to resume work and reduce debt
Sete Brasil, a Brazilian ship charter company, has launched a tender for the sale of its four ultra-deep water drilling units. That could potentially end an imbroglio that has cost billions of dollars to shipyards, subcontractors, investment banks, pension funds and Petrobras. Sete Brasil expects to receive offers on February 28 for the semi-submersible platforms Urca and Frade and the drillships Arpoador and Guarapari.
The bidding rules establish that only drilling contractors with experience in deep waters can compete and should not be prevented from signing contracts with Petrobras to participate in the bidding.
The semi-submersibles Urca and Frade were being built in BrasFels shipyard, in Rio de Janeiro, when the Sete Brasil project began to fall apart.
The Jurong Aracruz shipyard, in Espírito Santo, was responsible for building the drillships Arpoador and Guarapari.
Bidders have the option of submitting offers for the acquisition of the four platforms in a single package or at least two units, provided that the pair is from the same shipyard.
The winning bidder will also be responsible for all investments necessary to complete the construction of the platforms.
progress of works
The last report of the Sete Brasil fleet, from June 2016, when the units had already been stopped, showed a physical progress of 89,96% in the construction of Urca, followed by 84,76% in Arpoador, 74,21, 69,09% in Guarapari and XNUMX% in Frade
“Despite the costs and the possibility of adding even more units to a market that is already oversupplied, the terms of the agreement that will help restructure Sete Brasil could be attractive for rig owners,” says a source.
As part of the deal approved by Sete Brasil's creditors last year, each of the four rigs will be chartered by Petrobras for a period of 10 years for a daily fee of US$299.000, although the oil giant has not said when it expects the units to start. operating the contracts.
Sete Brasil had already partnered with six drilling contractors – Seadrill, Ocyan, Etesco, Odfjell, Petroserv and Queiroz Galvao Oil & Gas (now Constellation Oil Services) – to operate its platforms.
These alliances are no longer in effect following the collapse of Sete Brasil due to the Lava Jato corruption scandal, and it is still unknown whether any of these companies, or other platform operators such as Transocean, Ensco or Diamond Offshore, would be willing to join the project.
“There are many uncertainties surrounding this Sete Brasil deal, such as compliance risk, but the possibility of adding a portfolio of more than US$1 billion per rig is certainly attractive,” another source said.
Ascension and Chaos
Created in 2010 when chartering activity was booming, Sete Brasil originally ordered the construction of 29 ultra-deep rigs at five Brazilian shipyards, with 28 to be chartered to Petrobras on long-term contracts averaging $530.000 per day .
Sete Brasil began to face problems a few years later, when it had difficulties obtaining financing from local financial institutions.
The construction of the platforms was suspended in 2015, when the company ended payments to the shipyards and the Lava Jato investigation intensified.
In April 2016, Sete Brasil filed for bankruptcy with a total debt of US$17,4 billion. The money raised by the eventual sale of the four platforms is expected to help pay off part of that debt.
The contracts for the other 24 units that would be chartered to Petrobras were terminated, while the order for the 29th rig, which was being built on a speculative basis, was also cancelled.
As part of the agreement, Petrobras is exiting the complex shareholding structure of Sete Brasil, so that it no longer holds any stake in the company.
Until this is finalized, Petrobras holds a 5% direct stake in Sete Brasil and an indirect 4,6% stake through the FIP Sondas investment fund, which comprises 11 Brazilian investment banks and pension funds with a total stake of 95 % in the company.
