Petrobras Postpones 28 Rig Tenders to '09

"Brazilian state oil company Petrobras has postponed construction tenders for 28 deep-sea drilling rigs to 2009, the Estado News Agency reported Tuesday.

The rigs were to be tendered exclusively to Brazilian construction companies this year.

"There are no longer the conditions to issue the tender this year," said Jose Jorge de Moraes Jr., general manager for new business at the company's exploration and production department.

However, Moraes sees an upside to the current global economic crisis, in that it may lead to lower prices for rigs in the short term. This would allow Petrobras to cut its oil exploration and production costs in the sub-salt layer off Brazil's southeastern coast.

According to Moraes, the current price of oil at around $60 a barrel is an impediment to developing the sub-salt layer, and this area is one of Petrobras' priorities.

Moraes also said Tuesday that Petrobras plans to return to drilling in the Jupiter, Iara and Azulao (formerly Ogum) blocks in 2009. Azulao is operated by ExxonMobil near the Tupi block in the Santos Basin, off the coast of Sao Paulo state.

It was hoped to have 14 rigs drilling in the blocks in 2012 and produce 1 million barrels a day in 2015, said Moraes."
RIGZONE

I suppose this should be interpreted as good news as a significant addition to global ultra deep drilling capacity will be at least delayed. However a global or at least a semi global deppression isn't good news for anyone.
Seadrills drillship West Polaris is drilling in Azulao(BM-S-22) for Exxon.

Update
Petrobras clarifies revisions to business plan

"RIO DE JANEIRO: Brazilian state oil company Petrobras has issued a statement to clarify media reports regarding the revision of its business plan and the postponement of the hiring of drilling rigs.

Petrobras postponed the announcement of its business plan until the end of the year on Oct. 17, in order to complete project analyses because of new market conditions. The company stated that its business plan is still being prepared and it has no information to make any statement regarding the postponement or anticipation of its projects and the possible impact this may have on its estimated production curve for the upcoming years."

There's a lot conflicting information of the break-even level(s) for the pre-salt oil: A year ago some officials(Petrobras or Brazilian government) claimed that oil production from the Santon Basin was commercially viable at 20 dollars a barrel now estimates for the break-even level vary from 35 to 60 dollars per barrel.