SP: O&M Sector: Petrobras rig tender - SembMarine is out, but Keppel still has a chance
Analysts: Nancy Wei/Stella Tan UOB KayHian Tel: (65) 6590-6628/6590-6629

Local Brazilian shipyard EAS has submitted the lowest bid in the two shipyard packages (total: 9 rigs) of the Petrobras' 28-rig tender. Bid results are as below.

Sembcorp Marine (SMM) appears to be out of the game while Keppel still has a good chance in rig contractor package as three different rig contractors - Etesco, Petroserv and Queiroz Galvao - intend to use Keppel's Brazilian shipyard to fabricate a total of 6 rigs.

Our earnings forecasts (with sizeable contract wins from the rig tender) and stock recommendations are under review.


Petrobras Rig-Tender Results

1st Package: 7 drillships

1) Estaleiro Atlantico Sul (EAS) consortium (includes Samsung Heavy Industries) - US$4.65b (US$664.3m/drillship)

2) Alusa-Galvao Engenharia consortium - US$4.678b (US$668.3m/drillship)

3) Keppel FELS - US$5.172b (US$738.8m/drillship)

4) Jurong Shipyard (SMM) - US$5.178b (US$739.7m/drillship)

5) OAS-Odebrecht-UTC Engenharia consortium - US$5.311b (US$758.7m/drillship)

6) Andrade Gutierrez - US$5.768b (US$824m/drillship)

2nd Package: 2 rigs (of broader design specs)

1) EAS - US$719.0m (drillship)

2) Keppel FELS - US$748.9m (semi-submersible rig (semi))

3) Jurong Shipyard (SMM) - US$870.0m

4) Andrade Gutierrez - US$966.2m

5) OAS-Odebrecht-UTC Engenharia - US$988.6m

6) Andrade Gutierrez - US$1.17b

3rd package - Rig contractor tranche: (6 drillships + 6 semis)

Commercial bids have been opened and are still being evaluated by Petrobras.

EAS leads Petrobras bids

Brazil's Estaleiro Atlantico Sul shipyard (EAS) has submitted the lowest bids in two categories of a Petrobras tender aimed at supplying up to 28 locally-built deep-water drilling rigs for its pre-salt projects, and is well-placed to secure multiple orders at its brand-new facility in the north-eastern state of Pernambuco.

Fabio Palmigiani 25 November 2010 15:47 GMT

EAS presented an offer of $4.65 billion to supply seven drillships, or $664.3 million per unit. The EAS group is made up of Brazilian contractors Queiroz Galvao, Camargo Correa and PJMR, plus South Korea's Samsung Heavy Industries.

Another Brazilian consortium, Alusa-Galvao Engenharia, was a close second, offering $4.678 billion, or $668.3 million per unit, technically a tie.

Third place went to Keppel Fels with a proposal of $5.172 billion, or $738.8 million per unit, trailed by Jurong Shipyard with $5.178 billion, or $739.7 million per unit, the OAS-Odebrecht-UTC Engenharia consortium with $5.311 billion, or $758.7 million per unit, the Estaleiro Eisa shipyard with $5.492 billion, or $784.6 million per unit, and Andrade Gutierrez with $5.768 billion, or $824 million per unit.

Petrobras will allow another five days for appeals to be filed before making any official announcement. After that pricing details will be subject to negotiations with the company's engineering department.

The units to be contracted will be acquired by Petrobras on a purchase basis, although drilling companies around the world are keeping a watchful eye on Petrobras as the company has hinted that it may eventually open the door to management contracts, farm-in opportunities or outright sale.

The state-controlled company also opened the envelopes on the second package meant for contracting two rigs with broader design specifications and capable of drilling in water depths of up to 3000 metres.

EAS again submitted the lowest bid of $719 million for the construction of a drillship, while Keppel Fels offered to build a semi-submersible unit for $748.9 million.

Jurong Shipyard finished in third with an offer of $870 million, followed by Andrade Gutierrez with $966.2 million and OAS-Odebrecht-UTC Engenharia with $988.6 million. Andrade Gutierrez also offered a single-column unit for $1.17 billion.

The second part of the domestic rig-building programme, featuring chartered units able to work in up to 3000 metres of water, also reached its conclusion when the envelopes containing the commercial proposals were opened by Petrobras' exploration and production department.

The chartered units were divided into two packages, one for drillships, labelled Lot A, and the other for semi-submersible rigs, or Lot B.

Etesco offered two drillships at a dayrate of $648,333 each, plus a mobilization rate of $25.9 million, while Saipem bid four drillships for a dayrate of $740,000 each with a mobilization rate of $22.5 million.

Etesco plans to build the drillships at the new OSX yard in Rio de Janeiro state and Saipem offered to build the four units at the Eisa shipyard intended in the north-east state of Alagoas.

As part of Lot B, Etesco proposed two semi-submersible rigs for a dayrate of $639,999 each with a mobilisation rate of $25.6 million.

Petroserv offered two semisubs for $790,000 each, plus a mobilisation rate of $31.6 million, while Queiroz Galvao bid two semisubs for a dayrate of $677,000 each and a mobilisation rate of $23.7 million. All three groups intend to build the rigs at the Brasfels yard in Rio de Janeiro.

A Petrobras source said the company should have the final results on the winning bidders for packages A and B next week, as the committee will now analyse the combined prices of the dayrates and mobilisation fees for all proposals.

Petrobras expects to close the tender by the end of the year. The rigs are due for delivery between 2014 and 2017.

Published: 25 November 2010 15:47 GMT | Last updated: 25 November 2010 18:39 GMT