Petrobras orders three newbuild semisubmersibles

April 18, 2008
Petrobras signed three lease contracts with Seadrill for three newbuild semisubmersible drilling rigs and a separate contract with MPF Corp. Ltd., Bermuda, for a multipurpose floater.

By OGJ editors
HOUSTON, Apr. 18 -- Petroleo Brazileiro SA (Petrobras) signed three lease contracts with Seadrill Ltd. for three newbuild semisubmersible drilling rigs and a separate contract with MPF Corp. Ltd., Bermuda, for a multipurpose floater. The contracts all involve deepwater projects off Brazil, Seadrill said.

Seadrill said its lease contracts are valued at $4.1 billion total:

• One 6-year contract is for the $542 million deepwater semi West Eminence under construction at Samsung shipyard in South Korea (OGJ, Sept. 24, 2007, p. 41).

• Petrobras also signed a 6-year contract for the West Taurus, a $457 million deepwater semi under construction at the Jurong shipyard in Singapore.

Fourth-quarter delivery is scheduled for both West Eminence and West Taurus. Both contracts call for start-up of operation off Brazil in 2,400 m of water in early 2009.

• Petrobras, in addition, signed a 6-year contract for West Orion, a $532 million semi under construction at the Jurong shipyard in Singapore. West Orion is scheduled to be delivered during second-quarter 2010. The start-up of operations off Brazil in 2,400 m of water is scheduled for third-quarter 2010.

In a separate deal, Petrobras signed a $630 million contract with MPF, for the 3-year lease of its new multipurpose floater MPF-01 under construction at Dragados Offshore SA's Cadiz, Spain, shipyard. The MPF production-drillship is scheduled for delivery in late 2009.

Petrobras secured an option to extend this contract for another 2 years, making the total value of a 5-year deal $965 million.

In addition, Petrobras recently signed a memorandum of understanding with Noble Corp. to extend the leases of five deepwater rigs currently drilling off Brazil—two semis and three drillships—for a period of 29 rig years at a potential cost of $4 billion (OGJ Online, Apr. 4, 2008).