Brazilian drilling contractor Constellation Oil Services has reached a preliminary agreement for $35m of third-party financing to fund capital expenditures for its semi-submersible drilling rig Atlantic Star.
The capital expenditures are related to the rig’s three-year contract with Petrobras. The estimated contract value is $199m.
The financing is expected to be secured by a priority-lien on the rig and its related contract and insurance receivables as well as the equity interests in Star International, the rig owner.
Constellation acquired the rig in 1997 and completed an update on it in 2011.