Subsea 7 awarded contract extensions in Brazil

Source: press release, 4 September 2020

‘Seven Rio’, a construction/flex-lay vessel capable of operating in water depths of up to 3,000 metres
‘Seven Rio’, a construction/flex-lay vessel capable of operating in water depths of up to 3,000 metres (photo: Subsea 7)

Subsea 7 has announced an agreement with Petrobras to extend by 1 year the current long-term day-rate contracts for three pipelay support vessels (PLSVs) operating offshore Brazil.

The extensions have a combined value of approximately USD 155 million, net of agreed reductions to the current day-rates, and increase the backlog relating to the four Brazilian PLSVs to USD 493 million at 31 August 2020.

Seven Waves, Seven Rio and Seven Cruzeiro will operate at a new day-rate with effect from 1 August 2020 and their firm contract periods will now end in Q2 2022, Q3 2022 and Q4 2022 respectively. Seven Sun will complete its current contract in Q2 2022 at its prevailing day-rate.

Marcelo Xavier, Vice-President Brazil, says, “These contract extensions reflect our long-standing relationship with Petrobras and desire by both parties to reach a mutually beneficial solution in these challenging times. We remain focused on performing safely and to a high standard for our valued client.”