Constellation locks in $1.1 billion Brazil deepwater rig extensions with Petrobras

(WO) — Constellation Oil Services has secured contract extensions with Petrobras that add approximately $1.1 billion in backlog, strengthening long-term utilization for its offshore drilling fleet in Brazil.

The agreement extends contracts for three rigs—Brava Star, Gold Star and Alpha Star—by nearly 10 years combined, increasing the company’s total backlog by 67% to about $2.8 billion through 2030.

The Brava Star drillship received a four-year extension through December 2030 and is expected to support ongoing development of the Búzios field. The contract includes upgrades such as managed pressure drilling equipment beginning in 2027.

The Gold Star and Alpha Star semi-submersible rigs each received extensions of nearly three years. The Gold Star contract includes integrated services for well workover and plug-and-abandonment operations, along with a payment deferral structure tied to receivables monetization.

As part of the agreements, Constellation will also deploy new technologies aimed at improving drill floor safety across its fleet.

“These contract extensions are highly strategic for Constellation, increasing backlog and expanding long-term contract coverage, thereby reinforcing revenue visibility and cash flow stability," said Rodrigo Ribeiro, CEO of Constellation. "For 2026, the price concessions granted as part of the negotiations represent approximately 3% of the Company’s revenue, while the payment deferrals are expected to be offset through receivables monetization, resulting in a neutral impact on cash flows. Both effects are fully reflected in the Company’s previously disclosed guidance for the year.” 

The extensions reinforce demand for ultra-deepwater drilling assets in Brazil, where long-cycle offshore projects continue to drive rig utilization and contract visibility for contractors.