Oil-rig supplier Sete Brasil Participacoes has secured BRL8.8bn ($3.71bn) loan from Brazil’s national development bank.
The Brazilian firm plans to use the funding from BNDES to finance construction of nine deep-water offshore drilling rigs.
According to Sete Brasil, the loan will clear an obstacle as the company commences construction on the first offshore drilling rigs that will be built in Brazil.
The company will use the funding to construct the first nine drill rigs, which form part of a portfolio of 29 rigs that was announced in 2012.
Over the next eight years, the company plans an investment of $27bn to build the drill rigs for Petroleo Brasileiro (Petrobras).
The rigs are part of a series of orders for the machinery and their construction is also part of a plan to use development of oil discoveries in Brazil to rebuild the country’s shipbuilding sector.
The machinery will be used to develop oil fields that are discovered off the country’s coast.
In order to pump oil from the fields and later on bring it to market, Petrobras will need many drilling rigs, platforms, tankers and support vessels.
Upon receiving orders to supply off-shore rigs, Sete Brasil will commission them to shipyards rather than building them itself.
BNDES’s investment arm BNDESPar also will buy up to BRL1.2bn ($507.26m) in debentures that can be converted into Sete Brasil shares.
Image: Sete Brasil will use the loan to finance construction of nine offshore drilling rigs. Photo: courtesy of num_skyman / FreeDigitalPhotos.net