Subsea 7 gains contracts from Petrobras for offshore Brazil

Engineering, construction and services company Subsea 7 has secured contract extensions worth $250m from Petrobras for three pipelay support vessels (PLSVs).  

The vessels are currently on long-term day-rate contracts in offshore Brazil.

Subsea 7 Brazil region vice-president Marcelo Xavier said: “These contract extensions reflect our long-standing relationship with Petrobras.

“We are focused on delivering a safe and reliable performance. We have the right capability and capacity in Brazil to meet our clients’ needs.”

Following the extensions, the contract periods for the Seven Waves, Seven Rio and Seven Sun will be terminated during the second quarter of 2021, the third quarter of 2021 and second quarter of 2022 respectively.

"The contract was due to expire next year, and the backlog of the group fell by around $106m as a result."

Subsea 7 said that the extensions have been awarded on the same commercial terms and at the same day rates as in the original contracts.

In January, Subsea 7 announced the early termination of the day-rate contract for its PLSV Seven Mar working for Petrobras, offshore Brazil.

Originally, the contract was due to expire next year, and the backlog of the group fell by around $106m as a result.

Following termination, the operating licence for Seven Mar expired, which resulted in the contract ending early.

Last month, Subsea 7 announced it would acquire certain businesses of EMAS Chiyoda Subsea under the US bankruptcy code Chapter 11 Plan of Reorganisation.

The acquisition became effective on 29 June after confirmation from the US Bankruptcy Court for the Southern District of Texas.