Petrobras on Monday said that drilling operations on 5 deepwater rigs would be halted. The rigs are contracted to Petrobras by drilling contractor Schahin.
Rather than termination notices handed down by the NOC, this early cessation of drilling seems to be driven by the contractor rather than the operator. Schahin informed Petrobras on April 2 that it was planning a controlled shutdown of drilling activities on the 5 rigs.
Schahin is financially strapped – it’s creditors are suing the company for unpaid notes. The shut down of these rigs appears to be linked to financial insolvency. Reports indicate the company is close to filing for bankruptcy protection, and may move to do so by the end of this week.
Petrobras indicated that it is working with Schahin to shut down operations safely, and it is reviewing the contractual measures it can take, it said.
Schahin currently has 6 deepwater rigs under contract to Petrobras:
- The Amazonia, a 6th gen semi
- The Cerrado, an UDW drillship
- The Pantanal, a 4th gen semi
- The SC Lancer, a DW drillship
- The Sertao, an UDW drillship
- The Vitoria 10000, an UDW drillship