Rig Builders

Rig Builders: Final outcome is contingent on Petrobras’ decision. Petrobras has said the bids in the three categories “will be analysed by its respective commissions that will evaluate all the proposals before the release of the final result.”…

The lowest bidder in categories 1 and 2 is the EAS group, made up of Brazilian contractors Queiroz Galvao, Carmargo Correa and PJMR, plus Samsung Heavy. In cat 1 (for the construction of two rigs), Keppel Fels appears to be well-positioned to win a rig, having come in with the second lowest bid after EAS….

In cat 2, Keppel Fels’ and Jurong Shipyard’s (Sembcorp Marine) bids are behind those of EAS and Alusa/Galvao. The final outcome of the entire rig tender will depend particularly on how many seven-drillship packages Petrobras decides to purchase in category 2…..

In cat 3, rig contractors will charter rigs to Petrobras. Should Petrobras decide to award orders in category 3, Keppel appears to be well-positioned as it has been earmarked by three rig contractors - Etesco, Queiroz Galvao and Petroserv - to build six semisubmersible rigs….

RBS has Buy Call on KepCorp, raising TP to $13 from $11.30 and Deutsche has Buy call on both KepCorp and Semb Marine with TP of $12.50 and $6.30 respectively.