around the shipyards in Angra dos Reis and Jurong now they are more likely to resume construction contracts than they were a few years ago, before all this crisis that hit the Brazilian naval sector. It turns out that Petrobras started this week negotiations with Sete Brasil for operations at the Brasfels and Jurong shipyards for 4 more drilling rigs. According to the state-owned company's assessment, Sete Brasil has ample conditions to carry out the works for these units, but before that, it needs to resolve some bureaucratic pending issues.
The first of these is the issue of judicial recovery, the reorganization of the debt with its creditors and the acceptance of Petrobras' terms by these same creditors. But all this hinted that there will be a positive outcome. The original contract was for the construction of 28 rigs, Petrobras cut 26 and so far, the contractual terms are limited to these 4. See the union statement below:
“Sete Brasil took an important step forward in the judicial recovery that it entered 2 years ago when it recognized a debt of 18 billion with creditors.
Yesterday, Petrobras, a partner and client of Sete, reported that the state-owned company's Board of Directors approved terms for a possible agreement within the scope of an extrajudicial mediation that is the resumption of 4 rigs and ending the contract of the other 24 units spread across Brazil.
Now Sete Brasil needs to present a series of requirements and the creditors must accept the terms presented by Petrobras so that the agreement is finally closed.
If an extrajudicial agreement is reached between Sete Brasil and Petrobras, the trend is that the 4 rigs taken back will be those at the Brasfels shipyard and Jurong shipyard – ES, which are the most advanced. We still don't have a certain date on when the resumption of works will start as there is still a way to go that could be fast or it could be time consuming. But it took a very important step because since 2014 these works were stopped and without destination. The Union is closely monitoring and any and all news will be informed.”
