Boston, MA 02\/12\/2014 (wallstreetpr) – Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR)<\/b> is soaked in a lot of challenges. The company is in the middle of financial need to fund various projects, many of which are aimed at boosting or even doubling its fuel production. Yet at the same time the company is not making enough money from its existing operations, many of which are operating at loss, thanks to the strict pricing policy that the state-run business observes.<\/p>\n
Over the past years Petrobas has lost a significant value of its market capitalization and save for occasion gains on the browsers, the stock continues in a downward spiral that is worry investors. Recently the company announced that it was adding six more platforms to its portfolio which should significantly boost production going forward. But still, the company\u2019s divestment efforts are dragging and this might it the money needed to fund additional production plants.<\/p>\n
A deal that could get things moving<\/b><\/p>\n
Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) is however reported to have struck a deal with Helix Energy Solutions in which the latter will provide offshore well intervention services. These services will be offered in Brazil.<\/p>\n
As part of the deal, it is reported that Helix will provide offshore well services in two chartered monihull vessels at the Flensburger. Those will be new chartered vessels. Specifically, Helix will provide topsides and manage the well integration equipment for the said vessels. That work will also involve building and overseeing the construction at the shipyard.<\/p>\n
It is reported that an estimated $230 million will go into the topside equipment to for the two new vessels. That is according to Helix. A company known as Siem will own the vessels and it will charter them plus the marine crew to Helix for time duration of seven years in the initial phase.\u00a0 This arrangement however allows extension of the time.<\/p>\n
That being said, the initial contract term with Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) is about four years. The first vessel for the offshore well intervention operations will be in service about mid 2016.<\/p>\n
\nSignificant opportunity<\/b><\/p>\n
Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) will benefit greatly from Helix services. Yet Helix too believes that being in Brazil presents a significant opportunity.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 02\/12\/2014 (wallstreetpr) – Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) is soaked in a lot of challenges. The company is in the middle of […]<\/p>\n","protected":false},"author":32,"featured_media":15157,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2236],"tags":[1884,1883],"stock_ticker":[],"class_list":["post-15156","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-nysepbr","tag-petroleo-brasileiro-petrobras-sa-adr-nysepbr","entry"],"acf":[],"yoast_head":"\n