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May 25, 2013 -- Updated December 01, 2012 14:09 HKT

Petrobras NYSE:PBR cancels 5 drill ship orders


paul@livetradingnews.com
Posted on: Dec 1st, 2012

Petrobras NYSE:PBR cancels 5 drill ship orders

ORIG

Brazil’s state-controlled Crude Oil giant Petroleo Brasileiro S.A. aka Petrobras, announced Friday that it was cancelling an order for 5 new drill ships that were placed with Ocean Rig UDW Inc. NASDAQ: ORIG.

The 5 rigs were planned to be put to work in the pre-salt layer of the Santos Basin, at water depths up to 3,000 meters, about 10,000 ft.

In its press release, Petrobras said: This decision is based on the reduction of future needs for drilling, due to a fewer number of wells expected to be drilled in the pre-salt Santos Basin, relating to a higher productivity gained through the project wells in that area.

Given the company’s lack of production growth that may not be the whole story. Petrobras could be looking for ways to maintain profitability in the face of its long-term $236-B spending plans.

The 5 rigs were ordered in February at a daily rate of $548,000 for a 15-yr term. At the time, Petrobras ordered a total of 26 new rigs, all to be built in Brazil.


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Heffernan Capital Management
Linda Johnson,
Business Development Director – Private Client Group,
Sales@Heffcap.com

Singapore

3 Raffles Place #07-01
Bharat Building Singapore 048617
Tel: +65 6329 6408
Fax: +65 6329 9699

 Paul A. Ebeling, Jnr.

Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster’s Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.

Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.

 

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