Constellation, an offshore oil and gas drilling services provider in Brazil, has secured a new contract with Petrobras for the deployment of Admarine 511, a jack-up drilling rig owned by its commercial partner ADES Holding.
The rig, operated by Constellation, will be used for a campaign of Plug and Abandonment (P&A) of wells at shallow waters in the Sergipe, Alagoas, Ceará and Potiguar basins, offshore Brazil.
With this contract, valued at $170 million, Constellation expects to generate about 100 direct new jobs that will be met mostly by Brazilian workforce.
The Admarine 511 will be run and operated by Constellation, which will have up to 210 days for mobilizing the rig from its current location in Bahrain, to Brazil, where it will remain under contract for a firm execution period of 1.143 days.
The contract also includes an extension option of up to 472 days, upon mutual agreement between the parties.
The rig is already undergoing class inspection and essential adjustments to meet Brazilian regulations.
The Admarine 511 is a three-legged cantilever jack-up rig, model MSC CJ46-X100D, designed to operate in water depths up to 375 feet (114 meters)
"We are excited to announce the signing of this new contract, marking our strategic return to shallow water operations and our entry into a promising market segment. This project is the second third-party owned asset to be operated by Constellation, aligning with our core competencies as drilling contractors and playing a vital role in Petrobras' ambitious decommissioning plans.
“The initiative will progress in stages, commencing with the P&A of a significant number of wells currently connected to these fixed platforms. Based on the recent disclosures from Petrobras, we anticipate that this market will provide sustained demand for our services well beyond the duration of the contract,” said Rodrigo Ribeiro, CEO of Constellation.