Page 18: of Maritime Reporter Magazine (June 2016)

MARKET INSIGHT: OFFSHORE

The Arpoador drillship nearing completion at the EJA yard in early 2016.

Photo: EJA

Sete Brasil Sinks

As Petrobras goes, so too do the fortunes of Sete Brasil, which had set out to build the world’s biggest deepwater drilling ? eet

BY CLAUDIO PASCHOA ete Brasil set out to build the stimulate local shipbuilding by building Sete Brasil in 2010, with a total value nal contract. Petrobras and Sete never world’s biggest deep-water specialized ships, which had never been of US$25.7 billion. Sete Brasil’s 29 reached an agreement, leaving Sete Bra- drilling ? eet, with a large order built in Brazil before, while aggregating rigs would be constructed by ? ve dif- sil short of funds and with debts exceed- book from Brazil’s National value through technology transfer from ferent shipyards and operated by seven ing R$19 billion (US$5.52 billion). This

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Operator, Petrobras. That ambitious experienced foreign shipbuilding part- different operators. Sete’s shareholding in turn forced the Sete Brasil to declare dream has sunk, along with Petrobras’ ners, building new shipyards and guar- structure includes banks and investment bankruptcy, with its shareholders ? ling credibility. The concept behind launch- anteeing high local content during con- funds. Altogether 10 institutions, which for judicial recovery, to be conducted ing Sete Brasil was put forward in 2010 struction and through the use of mainly have the title of FIP Sondas, own 95% of by the of? ces of Alvarez & Marsal, by a group of Petrobras executives. Sete local equipment and service suppliers. Sete Brasil’s capital. The remaining 5% which specializes in complex corpo-

Brasil was to be a private national com- Heavily indebted, with major cash is owned by Petrobras itself. Petrobras’ rate restructuring. Sete claims to only pany, specialized in building and leasing ? ow problems, facing low oil prices and own pention fund “Petros” is also part of have suf? cient funds to maintain opera- state-of-the-art, sixth generation, deep- trying to overcome its largest corruption the investment fund which controls FIP tions until the middle of this year and water drillships and semi-submersible scandal ever, Petrobras is selling assets, Sondas. on top of that, company executives and drilling units for lease to their only cli- reducing investments and cutting costs. Following the cancelation of the origi- partners to some of the local shipyards ent, Petrobras. This ? eet of ships was This led the super-major to suspend the nal contract, Petrobras then offered to contracted to build the deepwater drill- pegged for deepwater pre-salt drilling leasing contracts for 29 drillships and reduce the number of hired drillers to 19, ers are being investigated as suspects in operations offshore Brazil. It was wide- drilling rigs (23 Drillship and six Semi- then 15 and ? nally 10, all with signi? - the ongoing “Carwash” investigation, ly hoped that these new orders would Submersibles) originally signed with cantly lower day rates than on the origi- led by the Brazilian Federal Police. For 18 Maritime Reporter & Engineering News • JUNE 2016

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