SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Big Dog's Boom Boom Room
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: upanddown who wrote (124220)9/13/2009 8:33:45 PM
From: carranza21 Recommendation  Read Replies (2) of 206184
 
"The board of directors approved the strategy for construction of 28 new drilling rigs to be built in Brazil, with increased national content, to explore ultra-deepwaters including fields located in the subsalt," Petrobras said.

Your question:

"Any rumors as to which Brazilian shipbuilder has the capacity, connections and financing to give it an inside track to that first order?"

Short answer: No 100% Brazilian co. has nearly the capacity to handle such a large order. That is why the phrase "increased national content" is a part of the announcement. The Brazilians are fully aware of their limitations. They know that trying to go it alone would result in a disaster.

There are Singaporean, South Korean and American shipyards that can handle such an order on their own. Whichever one gets the order will have to build the equipment in Brazil with Brazilian partners.

Transocean already has rigs drilling in Brazil.

rigzone.com

I expect it would be substantially more efficient to hire a drilling contractor such as Transocean to do the work, but this is a highly political thing whose goal is to employ as many Brazilians [and line as many politicos' pockets] as possible. The strategy is probably not a good one; time will tell.

If the initiative doesn't work, the Brazilians will have to rely on contract drillers, who will have them over the proverbial barrel. I think relying on a sole supplier is probably not a good idea.

I certainly wouldn't rush into buying shares in any Brazilian co. listed in elmat's post. The politics [bribes] probably have not been sorted out.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News