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Sete Brasil was created in 2010 to manage the construction of 28 drilling units in Brazilian shipyards to fulfill Petrobras contracts to drill its pre-salt plays, at a time when Petrobras unrealistically planned to be the sole pre-salt operator. However, after the corruption scandals denounced by operation Car Wash, which led to the cancellation of the contracts, Sete Brasil faced financial difficulties leading it to file for administration, while leaving a trail of debts and unemployment at a number of local shipyards, some of which were newly constructed yards built for purpose.
Petrobras will now keep only four of the 28 drillers that were originally ordered from Sete Brasil, a company created under the government of former president Luiz Inacio Lula da Silva – who is currently serving a jail sentence – to build and operate drillships and rigs specifically designed and outfitted for exploring the deepwater pre-salt. The project was tarnished since its inception, as the plan involved the payment of fees by shipyard representatives to Petrobras executives, politicians and to a political party fund, in order to secure the contracts, according to former Sete Brasil directors, and Federal Police investigations. Sete Brasil was envisioned as the promise of the resumption of the maritime construction sector in Brazil, but ended up being one of the reasons of its downfall.
The names of the units that will go on sale have not been officially announced, but industry sources believe that they will be the NS Arpoador and NS Guarapari drillships, under construction in the Jurong Aracruz Shipyard, in Aracruz, in the state of Espirito Santo, part of Singapore’s SembCorp Marine (SCM) group and the SS Urca and SS Frade semi-submersibles, under construction at the Brasfels shipyard, in Angra dos Reis, Rio de Janeiro, owned by Keppel FELS Brasil, a subsidiary of Keppel Offshore & Marine, also from Singapore.
This makes sense as these four are in a more advanced stage of construction. The announcement of the bid is part of the judicial recovery procedure of the company and the receipt of the proposals ends in late February, that is, 30 days after the announcement.
Sete Brasil shareholders initiated an arbitration against Petrobras in early 2017, alleging losses that reached R$7 billion (US$1,90 billion) due to the withdrawal of Petrobras from the project. As Sete Brasil delayed the delivery of the equipment and with the fall in oil prices in the international market, Petrobras tried to renegotiate the charter contracts, a move which was rejected by Sete Brasil, generating a deadlock between the companies. The Sete Brasil recovery plan was approved at the beginning of November 2017 and included the amount to be paid for the four drillers, which was around US$1.25 billion, and if the proposals did not reach this minimum value, the transaction could only be realized if approved by the creditors. There were 22 creditors in total, 12 shareholders, five banks and five shipyards involved in the original Sete Brasil project.
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Valaris Limited announced new contracts awarded subsequent to issuing the Company’s most recent fleet status report on February 21, 2023. Three-year contract with Petrobras for drillship VALARIS DS-8. The rig will be reactivated for this contract. The total contract value is approximately $500 million, including a $30 million mobilization fee. 100-day contract with a TotalEnergies affiliate for drillship VALARIS DS-12. The contract is expected to commence in second quarter 2023. 70-day contract with Beach Energy offshore New Zealand for heavy duty modern jackup VALARIS 107. The contract is expected to commence in third quarter 2023. The total contract value is approximately $26 million. President and Chief Executive Officer Anton Dibowitz said, “We are particularly pleased to have secured the award for preservation stacked drillship VALARIS DS-8, for a contract that is expected to generate a meaningful return over the firm contract term, and we remain focused on exercising our operational leverage in a disciplined manner. This most recent award represents the sixth contract awarded to one of our high-quality stacked floaters since mid-2021, and speaks volumes about our demonstrated track record of project execution when reactivating rigs.” Dibowitz added, “Following the reactivation of VALARIS DS-17 and DS-8, we will have ten floaters working across the golden triangle, including four drillships in Brazil, a market where we expect to see continued growth over the next several years.” Updated Guidance As a result of the contract awarded to VALARIS DS-8, which will require the rig to be reactivated from preservation stack, we are updating our first quarter 2023 and full-year 2023 guidance provided on our fourth quarter 2022 conference call on February 21, 2023. First Quarter 2023 Contract drilling expense is expected to increase by approximately $5 million to $385 million to $395 million. Adjusted EBITDA is expected to decrease by approximately $5 million to negative $5 million to breakeven. Adjusted EBITDAR, which adds back one-time reactivation expense, is expected to be $25 million to $30 million, unchanged from the guidance provided on our fourth quarter 2022 conference call. Full-Year 2023 Revenues are anticipated to be $1.8 billion to $1.9 billion, unchanged from the guidance provided on our fourth quarter 2022 conference call. Contract drilling expense is expected to increase by approximately $60 million to $1.49 billion to $1.59 billion. Adjusted EBITDA is expected to decrease by approximately $60 million to $180 million to $220 million. Adjusted EBITDAR, which adds back one-time reactivation expense, is expected to be $280 million to $320 million, unchanged from the guidance provided on our fourth quarter 2022 conference call. Capital expenditures are expected to increase by $60 million to $320 million to $360 million. Source: Valaris Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here
Seadrill Limited announced that the West Neptune has executed approximately six months of term extensions with LLOG Exploration Offshore, L.L.C in the US Gulf of Mexico. The extensions will commence in direct continuation of the existing term, and will keep the rig busy until Q3 2024, furthering Seadrill and LLOG’s long-term association. Total contract value for the extension is approximately $79 million. Source: Seadrill Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here
Semisub rig owner Dolphin Drilling has inked a new contract with Peak Petroleum in Nigeria for its 1974-built Blackford Dolphin. The firm contract, which follows the letter of award in January, gives the Euronext Growth-listed owner of three rigs the potential to extend the unit’s backlog by a minimum of 120 days and up to 485 days. The deal adds to and will be a direct continuation of the previously announced 12-month contract with General Hydrocarbon Limited (GHL). Øystein Stray Spetalen-backed company said the effective dayrate associated with the minimum firm period of the contract is $325,000, including the mobilisation fee. “The final award of the contract for Blackford Dolphin shows the opportunities in Nigeria at a strong dayrate, in addition to building on the backlog for the rig. It also underlines the attractiveness of our assets, and we look forward to returning to revenue-generating operations in 2023,” noted Bjørnar Iversen, CEO of Dolphin Drilling. Source: Dolphin Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here
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