Petrobras and Ensco wheel and deal on rig contracts

UK-based offshore drilling contractor Ensco has revised terms with Petrobras over some of its rig contracts with Brazil’s scandal-plagued, financially troubled state oil firm.

By mutual agreement of the companies, two of the rigs – Ensco 6003 and Ensco 6004 – have had their contracts terminated effective May 1, 2016.

One rig, Ensco 6002, has had its term extended to December 2019 but its day rate has been decreased to $240,000.

And another one – ENSCO 6001 – will have its day rate reduced from $345,000 to $275,000 but the contract will still run to June 2018.

Ensco said the two rigs covered by the discontinued contracts will be removed from Brazilian waters and permanently retired, a sign of the weak state of the oil market.

In January Petrobras had cancelled the contract for Ensco drillship DS-5 over alleged graft payments involving a third-party consulting firm but Ensco denies those claims.


Donal Scully

With 28 years experience writing and editing for newspapers in the UK and Hong Kong, Donal is now based in California from where he covers the Americas for Splash as well as ensuring the site is loaded through the Western Hemisphere timezone.
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