Rig gigs with Petrobras bring Constellation $1.1 billion in additional backlog

April 2, 2026, by Melisa Cavcic

Constellation Oil Services, a Brazilian drilling contractor, has augmented its contract backlog thanks to extensions of drilling assignments for three rigs with Brazil’s state-owned energy giant Petrobras.

Offshore rig — Alpha Star; Source: Constellation Oil Services

Constellation has concluded its renegotiation with Petrobras, which enabled it to secure $1.1 billion in extra backlog net of already negotiated commercial concessions, increasing the company’s backlog by 67% to approximately $2.8 billion through 2030.

These amendments add nearly ten years of contract extensions for the Brava Star, Gold Star, and Alpha Star rigs, strengthening the Brazilian drilling player’s long-term fleet utilization, earnings visibility, and cash generation.

The company claims that the changes are structured through a blend-and-extend framework, enabling significant growth, which is perceived to underscore the robustness and operational reliability of its offshore drilling activities.

Rodrigo Ribeiro, CEO of Constellation, commented: “These contract extensions are highly strategic for Constellation, increasing backlog and expanding long-term contract coverage, thereby reinforcing revenue visibility and cash flow stability.

“For 2026, the price concessions granted as part of the negotiations represent approximately 3% of the company’s revenue, while the payment deferrals are expected to be offset through receivables monetization, resulting in a neutral impact on cash flows. Both effects are fully reflected in the company’s previously disclosed guidance for the year.”

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The four-year contract extension for the Brava Star drillship will keep the rig busy through December 2030, subject to early termination as of the 910th day of the extension. This unlocks a backlog addition of $569 million (net of discounts). The seventh-generation ultra-deepwater DP drillship is capable of drilling in water depths of up to 12,000 feet and has a drilling depth capacity of up to 40,000 feet.

The work will begin in direct continuation from the current contract, with no transition period. The operational scope includes a managed pressure drilling (MPD) equipment upgrade, starting in 2027. The rig is expected to play a key role in the continued development of the Búzios field.

The two-year and ten-month extension for the Gold Star semi-submersible rig will keep the unit occuped through December 2028, adding a backlog of $266 million. The job will begin in direct continuation from the current contract.

This assignment encompasses integrated drill pipe riser services supporting well workover and plug-and-abandonment operations. Constellation explains that invoices generated through December 2027 will be payable in January 2028, effectively deferring collections.

The company has obtained Petrobras’ approval, subject to customary proceedings, for the assignment of these receivables, and claims to be in advanced negotiations with leading financial institutions to implement a non-recourse factoring program, under which receivables are expected to be monetized as generated.

The two-year and ten-month extension for the Alpha Star semi-submersible rig will keep the unit in operation through December 2030, bringing a backlog addition of $300 million (net of discounts).

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The work will commence in direct continuation from the current contract. As part of such agreements, Constellation will provide new technologies focused on drill floor personnel safety enhancement for both the Alpha Star and Brava Star rigs.

“The agreement reflects a disciplined and collaborative negotiation with Petrobras and underscores the strategic importance of our semi-submersible fleet within its portfolio, supporting the execution of Petrobras’ business plan with a strong focus on safety, operational reliability, and advanced technology,” added Ribeiro.

The Alpha Star and Gold Star sixth-generation ultra-deepwater semi-submersible rigs are capable of drilling in water depths of up to 9,000 feet and have a drilling depth capability of up to 25,000 feet.