The Brazilian Development Bank (BNDES) has approved the financial support to Sete Brasil at the amount of approximately R$ 8.8 billion, and allowed its holding company, BNDESPAR, to issue up to R$1.2 billion of convertible debentures to the holding company Sete Brasil Participações S.A. 

The purpose of the funding is to support the construction of the first group of nine offshore drilling platforms – two of which are semi-submersible rigs and the remaining seven are drill ships – from a total of 29 facilities under construction in Brazil and contracted by Sete Brasil, 28 of which had previously been contracted by Petrobras to exploit pre-salt reservoirs. 

These nine platforms, which will be the first ones to be finished – between 2015 and 2016 – are being built specifically for exportation in five Brazilian shipyards: Jurong Aracruz (ES), Estaleiro Atlântico Sul (PE), BrasFels(RJ), Estaleiro Rio Grande (RS) and Estaleiro Enseada Paraguaçu (BA). 

The equipment will be acquired by nine Dutch specific purpose companies that are subsidiaries of Sete Brasil S/A. – Arpoador Drilling B.V, Copacabana Drilling B.V, Grumari Drilling B.V, Urca Drilling B.V, Frade Drilling B.V, Ondina Drilling B.V, Guarapari Drilling B. V, Camburi Drilling B.V and Cassino Drilling B.V. 

BNDES’ funding will help boost the development of the naval construction industry and the national chain of manufacturers in the oil and gas sector, and will contribute to the compliance with the local content policy established by the federal government regarding the development of oil production fields (minimum local content rising from 55% to 65%). Moreover, the bank is supporting a national company that will become one of the main charterers of ultra deep water platforms for Petrobras.

The beginning of the Brazilian production for this type of equipment brings many positive consequences, such as the generation of good quality jobs in Brazilian shipyards and access to platform construction technologies through partnerships with important international companies in the sector. 

Issuance of debentures – BNDES has approved the issuance of up to R$ 1.2 billion in debentures to Sete Brasil Participações S.A through its holding company, BNDESPAR. These resources are intended for the execution of the business plan presented by the company, which involves the construction of another 19 ultra deep water platforms besides the first nine with already approved funding. All platforms will be built in Brazilian shipyards in order to be chartered later. 

According to João Ferraz, CEO of Sete Brasil, the agreement made with BNDESPAR is an important milestone for the company. “We have today yet another piece of evidence that our work is a boost for the development of Brazil. This operation provides us with greater financial power to face the investments required for the challenge of exploiting Brazilian pre-salt”. Ferraz emphasizes that the agreement proves the solidity of the company and of the project for construction of platforms in Brazil, and concludes an important stage as the participation of BNDESPAR in Sete Brasil’s enterprise now enables the company to fulfill 100% of its demand in equity for the entire project, and reaches a total capital over R$11 billion.

The total projected investment required to conclude the entire Project amounts to US$ 25 billion, approximately.