Subsea engineering company Subsea 7 announced an agreement with Brazilian state-owned oil company Petrobras to extend by one year the current long-term day-rate charter contracts for three pipelay support vessels (PLSVs) operating offshore Brazil
The extensions have a combined net value of approximately US$155M in agreed reductions to the current day-rates.
The three vessels, Seven Waves, Seven Rio and Seven Cruzeiro will operate at a new day-rate from 1 August 2020 and their firm contract periods will now end in Q2 2022, Q3 2022 and Q4 2022 respectively. A fourth PLSV, Seven Sun will complete its current contract in Q2 2022 at its prevailing day-rate. The deal represents an increase in the backlog relating to the four Brazilian PLSVs to US$493M at 31 August 2020
Subsea 7 vice president Brazil, Marcelo Xavier said "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.”
Subsea 7 has also been awarded contracts worth between US$50-150M for work offshore Trinidad and Tobago, and with Aker BP for the Hod Field Development Project, located 12 km from the Valhall area in the Norwegian sector of the North Sea.