Constellation Oil Services, a Brazilian drilling contractor, has increased its contract backlog thanks to the extension of drilling duties for three rigs with Brazilian energy giant Petrobras.
Constellation concluded the renegotiation process with Petrobras, enabling it to secure US$1.1 billion in additional net backlog from already negotiated commercial concessions, increasing the company’s backlog by 67% to approximately US$2.8 billion through 2030.
These amendments add approximately ten years of contract extension for Brava Star, Gold starand Alpha Star drilling rigs, enhancing the Brazilian Drilling Company’s long-term fleet utilization, earnings visibility, and cash generation.
The company claims that the changes have been structured through a blended and expanded framework, enabling significant growth, which is seen to underscore the robustness and operational reliability of its offshore drilling activities.
Rodrigo RibeiroConstellation CEO commented: “These contract extensions are highly strategic for Constellation, as they increase backlog and expand long-term contract coverage, thereby enhancing revenue visibility and cash flow stability.
“For 2026, the price concessions granted as part of the negotiations represent Approximately 3% of the company’s revenues, while payment deferrals are expected to be offset by monetization of receivables, resulting in a neutral impact on cash flows. Both impacts are fully reflected in the company’s previously disclosed guidance for the year.
A four-year contract extension for the Brava Star drillship will keep the drilling rig occupied until December 2030, and is subject to early termination as of day 910 of the extension. This opens up a backlog of $569 million (net of discounts). The seventh generation deepwater DP drillship is capable of drilling in water depths of up to 12,000 feet and has a drilling capacity of up to 40,000 feet.
Work will commence as a direct continuation of the existing contract, without a transition period. The operational scope includes an upgrade of the Managed Pressure Drilling (MPD) equipment, starting in 2027. The platform is expected to play a key role in the continued development of the platform. Buzios field.
A two-year and ten-month extension for the Gold Star semi-submersible rig will keep the unit occupied until December 2028, adding a backlog of $266 million. The mission will start in a direct continuation of the current decade.
This mission includes integrated drill pipe lifting services that support well workover, plugging and abandonment operations. Constellation explains that invoices generated through December 2027 will be due for payment in January 2028, effectively deferring collections.
The Company has obtained Petrobras’ approval, subject to customary procedures, to allocate these receivables, and claims to be in an advanced stage of negotiations with leading financial institutions to implement a non-recourse factoring programme, under which the receivables are expected to be monetized upon their origination.
A two-year and ten-month extension for the Alpha Star semi-submersible rig will keep the unit in operation until December 2030, adding a backlog of $300 million (net of discounts).
The work will begin as a direct continuation of the existing contract. As part of these agreements, Constellation will provide new technologies focused on enhancing drilling floor worker safety for both the Alpha Star and Brava Star platforms.
“The agreement reflects disciplined and collaborative negotiations with Petrobras and underscores the strategic importance of our semi-submersible fleet within its portfolio, supporting the implementation of Petrobras’ business plan with a strong focus on safety, operational reliability and advanced technology.” Ribeiro added.
The Alpha Star and Gold Star sixth generation semi-submersible deepwater rigs are capable of drilling in water depths up to 9,000 feet and have a drilling capacity up to 25,000 feet.
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