Oceaneering announces Petrobras drill pipe riser systems contract

Oceaneering International (OII) announced that one of its wholly owned subsidiaries, Marine Production Systems do Brasil Ltda., has secured a five-year contract from Petroleo Brasileiro S.A. (PBR) for the operation of three existing drill pipe riser systems to support intervention and completion operations in Brazil. Petrobras also has the option to add a fourth DPR system by notifying Oceaneering prior to mid-December 2023. The contract value could be worth up to $75 million in revenue during the five-year contract period. Under the terms of the contract, Oceaneering will continue to provide Petrobras with services utilizing three existing drill pipe riser systems with installation workover control systems, or IWOCS, along with project management, engineering and support services. The company will be replacing the umbilicals on the existing systems in 2024. The replacement umbilicals are planned to be manufactured at Oceaneering’s facility in Niteroi, Brazil. Field operations under the contract are anticipated to commence when the current contract expires, or 18 months after award. Should Petrobras elect to add a fourth system, Oceaneering will have an additional 18 months to build the system, which would be expected to go on hire in June 2025.