Ocyan Inks First post-'Car Wash' Contract with Petrobras

By Marta Nogueira and Gram Slattery
Monday, July 29, 2019

Brazil's Petrobras has signed a two-year contract to lease a drilling rig from Ocyan, formerly known as Odebrecht Oleo e Gas, an executive told Reuters, in the first deal between the firms since a corruption scandal erupted five years ago.

Petroleo Brasileiro SA, as the state-run oil firm is known, formally selected Ocyan and two other companies in a recent tender for six drilling rigs, Ocyan Chief Executive Roberto Simões said in a Friday interview.

Petrobras awarded one of the rig contracts to Ocyan, with three going to Constellation Oil Services Holding SA and two to Brazil's Petroserv SA, Simões said. He did not disclose values.

The deal is significant as Petrobras and Odebrecht, Ocyan's parent company, are at the center of Operation Cash Wash, a massive ongoing corruption probe in which authorities have unearthed billions of dollars of bribes.

Odebrecht was banned from signing any new contracts with Petrobras until mid-2018, when the state-run oil firm decided to conditionally allow some business dealings with Odebrecht, following improvements in the conglomerate's compliance programs. Simões portrayed the rig contract as an opportunity for Ocyan to turn the page, calling it "enormously symbolic."

Petrobras declined to comment. Petroserv did not respond to a request for comment. Constellation has previously announced its winning bid.

Ocyan, which changed names in January 2018, is a fraction of its former size.

Its corporate offices are in a largely vacant building north of Rio de Janeiro's financial district. It now employs 2,000 employees, down from 6,000, Simões said, but it is looking to rebuild.

One of the firm's two operating FPSOs - massive ships used for offshore oil production and processing - lies in the Bauna cluster, which Petrobras recently sold to Australia's Karoon Energy Ltd.

A Karoon executive told Reuters last week that the firm plans to boost production at Bauna by over 60%, which could bode well for Ocyan, Simões said. Ocyan also has its eyes on Karoon's nearby Neon discovery, where, he predicted, Karoon would launch service tenders soon.

Ocyan is also looking to participate in a FPSO tender for Brazilian oil company Enauta Participacoes SA in the Atlanta field - which Simões expects to be launched by the end of the year - and the company is also looking abroad for opportunities in nations such as Guyana.

While Ocyan is examining two large FPSO tenders recently launched by Petrobras, Mero III and Itapu, Simões said those projects - which will require billions of dollars in expenditures - may be too large for the company.

(Reporting by Gram Slattery and Marta Nogueira; editing by Jonathan Oatis)

Categories: Contracts Deepwater Drilling Industry News Activity FPSO South America Floating Production

Related Stories

Aasta Hansteen Output Can Exceed Max Capacity

FPSO & IPO: Growth of an Operator

OFS Sector Expected to Take a Hit

Subsea 7 CEO Will Retire at Year End

Chevron to Boost St. Malo Production

Kim Heng Offshore Wins New HDD Contract

ExxonMobil Looks to Sell Australian Assets

Remote Technologies Augment Capabilities

Icon Offshore Wins Petronas Contract

Allseas Scores Gyda Platform Removal Job

Current News

Australia Reviewing Equinor Environmental Plan

Equinor, SSE Win Contract for Largest Offshore Wind Project

Liberator Pilot Well Plugged and Abandoned

Petrofac Sells Mexico Assets to Perenco

Petronas Q2 Profit Rises 8%

Allseas Scores Gyda Platform Removal Job

Monitoring, and Addressing, Crude Quality in Real-time

Dominion to Build Largest US Offshore Wind Farm

Maersk Drilling Rig Extended by Equinor

IUMI Reports Cut in Offshore Insurance Premiums

Subscribe for OE Digital E‑News

OE Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week