Petrobras reports that its Executive Board and Board of Directors have approved the final terms of an agreement with Sete Brasil subject to the fulfillment of precedent conditions.
The Agreement preserves the terms previously announced: (i) maintenance of charter and operation contracts regarding four drilling rigs, with 10-year terms and daily rates of US$ 299,000; (ii) termination of the contracts relating to the remaining 24 drilling rigs; (iii) removal of Petrobras and its subsidiaries from the shareholding structure of the companies of the Sete Brasil Group and FIP Sondas and; (iv) termination of contracts that are inconsistent with the Agreement.
Magni Partners, the winner of the bidding process held within the legal restructuring proceedings of Sete Brasil, in association with Etesco, will provide charter and operation services with respect to the four remaining drilling rigs, which are still under construction.
The execution of the contracts that will implement the Agreement is conditioned upon the fulfillment of the governance rules of Sete Brasil and the other companies involved. The Agreement and other related contracts will only become effective once certain conditions precedent are met, and such conditions must be fulfilled over time, the latter one to be implemented until June 30, 2020.