Friday, May 16, 2008

Petrobras Tries to Corner the Deepwater Rig Market

Well they are pretty close to it since they are hiring 80% of the 21 of the rigs that can drill in 9,800 feet of water.

Petrobras, as the Rio de Janeiro-based company is known, is hiring rigs that can drill in at least 3,000 meters (9,800 feet) of water, Chief Executive Officer Jose Sergio Gabrielli said in an interview last week. The world has 21 such vessels, according to Rigzone.com, which tracks the offshore drilling industry.

The day rates on these things are outrageous as well. They are going for $600K a day and Petrobras is driving the prices up to get at that Tupi discovery. Some people are saying that the Tupi discovery with its 12-30 billion barrels of oil may be as big or bigger than the 18.75 billion barrels in the Gulf of Mexico.

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