Sete Brasil Remains in Talks with OSX to Build Two Drilling Rigs

RIO DE JANEIRO--Sete Brasil said late Friday that shipbuilder OSX Brasil S/A (OSXB3.BR), part of billionaire entrepreneur Eike Batista's industrial empire, remains in the hunt to build two drilling rigs for the company.

Sete Brasil, a holding company that is building 28 high-tech drill rigs for state-run energy giant Petroleo Brasileiro (PBR, PETR4.BR), said it still wants to add two more rigs to its portfolio. Sete Brasil was created in 2011 by several Brazilian pension funds and banks, with Petrobras also holding a 10% stake.

"The priority in this negotiation continues to be OSX," Sete Brasil said.

Earlier Friday, a local press report indicated that Sete Brasil had dropped out of talks with OSX. OSX, which is building a shipyard at the Acu port in northeastern Rio de Janeiro state, has been in talks with Sete Brasil since mid-2012. The two rigs Sete Brasil wants to add to its fleet would be rented out on the spot market, a spokeswoman for the company said.

OSX declined to comment about talks with Sete Brasil.

"The company is attentive to new business opportunities with an outlook toward expanding its client list and portfolio of deliveries," OSX said. OSX currently has contracts to build vessels for sister-company OGX (OGXP3.BR), Petrobras, Sapura and Kingfish.

OSX shares closed down 5.8% at BRL2.76 in trading on the Sao Paulo Stock Exchange.


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