OSX: Talks with Sete Brasil to build drill rigs 'still on table'

9/18/2012

OSX: Talks with Sete Brasil to build drilling rigs 'still on table'

BY JEFF FICK

RIO DE JANEIRO -- Brazilian shipbuilder OSX remains in talks with drilling rig holding company, Sete Brasil, to build two rigs for state-run energy giant Petrobras, said OSX Chief Executive Carlos Bellot. The deal is "still on the table, and talks are evolving amid good expectations," Bellot told reporters at the Rio Oil and Gas 2012 conference.

The talks are focused on conditions surrounding the deal, such as guarantees, Bellot added. OSX is also eyeing other deals, such as tenders for ships, platforms or drilling rigs launched by Petrobras and other oil companies, he said.

OSX expects controlling shareholder Eike Batista to exercise a $1-billion put option to ensure that the company has the cash to move forward with any new orders, Chief Financial Officer Joao Borges said.

The process is ongoing, Mr. Borges said, adding that the company is already working with the expectation that the option will be exercised by March 2013, should OSX be successful in its hunt for new ship orders.

Mr. Borges noted that the company's current order book of approximately 23 vessels is already fully funded.

Dow Jones Newswires

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