Brazil's state-controlled oil company Petrobras (PBR) could be ready for drilling rig bids on the Tupi field in the Santos Basin in as early as four months, according to the energy giant’s CFO Almir Barbassa.
Two companies that could benefit from this news are Diamond Offshore Drilling, Inc. (DO) and Transocean (RIG), the second-largest offshore drilling contractor in the world which is looking to construct new rigs in Brazil to satisfy a requirement from Petrobras that they are domestically built.
Transocean reported a lower quarterly profit for Q1, but shares rose as earnings beat estimates.
Petrobras recently uncovered what it believes holds 5-8 billion barrels of oil and gas in the area, which CEO Jose Sergio Gabrielli now also says is not as difficult to tap as was earlier predicted.
With a successful dig, Brazil is poised to become a bigger oil producer than 90% of the Organization of the Petroleum Exporting Countries (OPEC) in five years. The United States needs this oil, and it will be developed.
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