Petrobras to keep Oceaneering busy for five years

Oceaneering International has secured a contract from Brazilian state-owned oil and gas giant Petrobras for the operation of drill pipe riser (DPR) systems in Brazil.

Oceaneering’s wholly owned subsidiary Marine Production Systems do Brasil Ltda. won a five-year contract with Petrobras for the operation of three existing DPR systems to support intervention and completion operations.

Petrobras also has the option to add a fourth DPR system by notifying Oceaneering prior to mid-December. The contract value could be worth up to $75 million in revenue during the five-year contract period.

Under the terms of 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.

The company will be replacing the umbilicals on the existing systems in 2024. The replacement umbilicals are planned to be manufactured at Oceaneering’s facility in Niteroi, Brazil.

Field operations under the contract are anticipated to begin when the current contract expires or 18 months after award.

If Petrobras elects 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.

“We are very pleased to continue providing Petrobras with DPR services over the next five years. Since winning the initial contract in 2018, we have greatly expanded our presence in Brazil and have leveraged our portfolio of services and products into other areas of the growing Brazilian market,” said Roderick A. Larson, President and Chief Executive Officer of Oceaneering.

“We believe our strong performance under the original DPR contract and our expertise in control systems and umbilicals for the subsea industry were key elements to winning this contract.”

Speaking about other recent contract awards, Oceaneering’s Offshore Projects Group (OPG) segment in September secured two international contracts that have a combined total value of over $100 million.