Petrobras Drill Pool Auction Results in Tie Between Six Equipment Sets

In Unprecedented Bidding Classification for Rigs Promoted by Petrobras, Six Rigs End Up in First Place, Now State-Owned Company Can Contract More Than Expected

In an unprecedented decision in this type of contracting, Petrobras classified six rigs in first place in the bidding to contract equipment capable of operating in 2,000 m of water depth.
There are no records in previous bids of a tie among this number of bidders, but it may be advantageous for the candidates since there might be a greater number of rigs contracted, instead of the two originally established.

The bidding, known as a “pool” of rigs, as they would not have a fixed location to operate, faced complicated moments, with the appeal filed by Ocyan, which forced Petrobras to qualify the Brazilian group and also the decision to maintain the disqualification of China Oil Field Services Limited (COSL).

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According to the bulletin published by the bidding committee, the tie for first place among six pieces of equipment brought the following list: Alpha Star, Gold Star, and Amaralina Star, from Constellation, Norbe VI, from Ocyan, Lone Star, also offered by Constellation, and Catarina, from Petroserv (Ventura).

The daily rates offered by the companies ranged from US$ 135,000/day to US$ 194,000/day, not taking into account the mobilization cost, and from US$ 141,000/day to US$ 201,000/day, including the total value.

The seventh rig offered that took second place was the Laguna Star (Constellation), third was the West Tellus, from Seadrill, fourth was the Deepwater Athena, from Transocean/Ocean Rig, and the rigs Noble Danny Adkins and Noble Jim Day, from Noble, were in fifth and sixth places, respectively.
From second to sixth place, the daily rates offered were above US$ 200,000/day.

Excess Supply of Rigs May Cover Another Bidding

It is said that Petrobras may, considering the number of rigs offered in this bidding, cover the shortages caused by the high prices of the anchored rigs auction (for shallow waters) held under the reverse auction model in the middle of this month.

Another factor that may lead Petrobras to take advantage of these offers to contract beyond expectations was the decision made last week to provision R$ 1.3 billion for Sete Brasil, as the company would no longer be relying on the rigs that are being auctioned in the construction phase at Brasfels and Jurong, due to the low bids it received.

After the announcement of the bidding results, negotiations will now begin, but first Petrobras has until May 5 to receive the proposals validated by the companies, which must make the equipment available in September and opt for a one-year contract, which can be renewed for another year or for a firm two-year contract.

Another issue to be resolved is the fact that some of the offered rigs are participating in other bids or are under contract outside Brazil, such as, for example, the case of the Catarina rig, owned by Petroserv, which has just been contracted by Eni.

Regarding the rigs from Sete Brasil, the Magni Partners proposal had an advantage over that of the Brasfels Shipyard in Angra dos Reis, but was 54% below the minimum floor and will need the approval of creditors!