Oceaneering Secures Contract From Petrobras

(RTTNews) - Oceaneering International, Inc. has recently announced that one of its wholly owned subsidiaries - Marine Production Systems do Brasil Ltda. has successfully secured a five-year contract from Petróleo Brasileiro S.A. (Petrobras) for operating three existing drill pipe riser (DPR) systems to support intervention and completion operations in Brazil. The five-year contract period is expected to fetch a revenue of up to $75 million.

Under the contract, Oceaneering will continue to provide Petrobras with services utilizing three existing DPR systems with installation workover control systems (IWOCS), along with project management, engineering, and support services.

In addition, the company is expected to replace the umbilicals on the existing systems in 2024, which are planned to be manufactured at Oceaneering's facility in Niteroi, Brazil. Field operations under the contract are expected to commence when the current contract expires or 18 months after award.

This contract also provides Petrobras with the option to add a fourth DPR system by notifying Oceaneering before mid-December 2023. If Petrobras decides to add a fourth system, Oceaneering will have an additional 18 months to build the system, which would be expected to go on hire in June 2025.