Brazilian Oil Firm Buys Offshore Drilling Rig for One Dollar

Monday, December 28, 2020

Brazilian oil company PetroRio has signed an agreement to buy a 1974-built semi-submersible drilling rig for one dollar.

The company earlier this month said it had signed a deal with Ventura for the acquisition, for US$ 1.00 (one US Dollar), of the Atlantic Zephyr rig. The rig is a semi-submersible anchored unit suitable for interventions and completions in wells with water depths up to 300m. 

"This acquisition’s purpose is to reduce operational costs and increase the Tubarão Martelo Field’s efficiency through a significant reduction of the response time to eventual wells shutdowns," the company said.

To remind, PetroRio earlier this year agreed to buy the OSX-3 FPSO for $140 million, and acquire an 80 percent stake in the Dommo Energia's Tubarao Martelo field off Brazil where the FPSO is deployed. It said the acquisition would allow for a 9 km tieback between the Tubarao Martelo and its nearby Polvo field, which would simplify the production system and create a private oilfield cluster. 

Providing further explanation for the Atlantic Zephyr rig acquisition, PetroRio said: "This strategy aims to replicate the Polvo Field’s successful model, which achieved efficiency and investments payback records, due to the rig attached to the platform."

The rig is expected to add annual operational and maintenance costs of around US$ 3 million and will avoid the contracting of third-party rigs for Field interventions - the field’s water depth requires anchored rigs, which have limited availability in Brazil, and can take several months to deploy. 

According to the company, the acquisition will allow workovers to be carried out in 60 to 70 days, at a cost of approximately US$ 9 million (more than 40% less than the cost of a workover carried out with a leased rig).

 

Categories: Drilling Activity South America Rigs

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