Petrobras secures semi for work off Brazil

Petroleo Brasileiro SA (Petrobras) has awarded a 5-year, $482 million drilling contract to Pride International Inc. for the Pride Mexico semisubmersible to drill off Brazil.

By OGJ editors
HOUSTON, May 23 -- Petroleo Brasileiro SA (Petrobras) has awarded a 5-year, $482 million drilling contract to Pride International Inc. for the Pride Mexico semisubmersible to drill off Brazil.

The contract is to start during second quarter 2008.

Before then, the rig will undergo a 270-day shipyard program and then be moved from the Gulf of Mexico. The $120 million shipyard program includes a previously planned regulatory survey and maintenance, upgrade of the rig's water depth capability to 2,300 ft from 1,100 ft, and modifications to the rig's mooring system and crew quarters.

The contract value includes a performance bonus option of as much as 15%, but it excludes revenues for mobilization, demobilization, and reimbursables. The contract also includes an operating cost escalation provision.

Currently the Pride Mexico rig is mobilizing to a shipyard in Galveston, Tex., having recently completed a 3-year contract off Mexico.

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