Petrobras Rig Supplier Said Close to Getting $4 Billion Loan
(Bloomberg) -- Sete Brasil Participacoes SA, the oil rig- supplier embroiled in Brazil’s biggest graft scandal, expects to secure $4 billion in fresh funding to finish work on some rigs, said a person with direct knowledge of the matter.
The loan from local and foreign banks has already been negotiated and is in the final phase of approval, the person said, asking not to be identified because discussions are private. Creditors who previously lent $3.6 billion to Sete have agreed not to ask for payment through August, and the company is seeking to extend the stand-still agreement through October to avoid a default, the person said.
Sete Brasil was created five years ago by Petroleo Brasileiro SA, the government, pension funds and banks to supply deepwater drilling platforms to Petrobras through lease agreements. Development bank BNDES, which previously agreed to extend financing, withheld funds after former Chief Operating Officer Pedro Barusco testified late last year that he accepted bribes in exchange for awarding contracts as part of a wider corruption probe known as Carwash.
Marcelo Odebrecht, chief executive officer of Odebrecht SA, whose unit is a Petrobras partner on some Sete platform projects, was detained by police on June 19. Odebrecht said at the time the detention was unnecessary since the company and its executives cooperated with the investigation.
Founded after Petrobras made the Western Hemisphere’s biggest oil discovery in 30 years, Sete was a cornerstone of the government’s campaign to push companies to use locally made parts and equipment. The company originally sought out to spend $25.7 billion by 2020 to make 28 deep-water drilling platforms. Now, it’s trying to keep building 15 of the platforms, sell four rigs partially owned by Odebrecht and cancel the contracts for the rest, the person said.
Sete Brasil, which also gets funding from shipyard companies, plans to raise $700 million in capital through October and an additional $500 million in the next four years to build the rigs, according to the person. The company’s shareholders and creditors are seeking equity investors in Asia, according to the person.
“Sete Brasil does not confirm the information,’’ it said in an e-mailed response to questions. ‘‘The company continues to pursue the viability of its restructuring plan.’’
To contact the reporter on this story: Cristiane Lucchesi in Sao Paulo at email@example.com. To contact the editors responsible for this story: Peter Eichenbaum at firstname.lastname@example.org James Attwood, Jessica Brice
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Operates 34 Offshore Rigs
Manages 10 Offshore Rigs
- Exxon, Petrobras Form Alliance To Develop Oil, Gas Projects (Dec 14)
- Natural Gas In Petrobras Pipelines Up About 23% In 2017 (Dec 05)
- Petrobras CEO Says To Discuss Refining Partnership With CNPC CEO (Nov 15)
Company: Sete Brasil Participacoes SA more info
- Brazilian Government Plans to Open Talks with Keppel, Sembcorp Marine (Sep 05)
- Singapore Rig Giant's Man In Brazil Says Managers Backed Bribes (Aug 03)
- Keppel Sees Prolonged Dearth Of Oil-Rig Orders Amid Glut (Jul 22)