Petrobras S.A. PBR, the Brazilian state-owned energy giant, has stated that Borr Drilling’s jack-up rig, namely Arabia I, has arrived in Brazilian waters to begin decommissioning activities in the Sergipe Basin. The Arabia I jack-up rig secured a four-year contract from Petrobras in Brazil. The contract includes a four-year option to extend the jack-up rig’s stay with Petrobras. However, the option currently remains unpriced.
The Arabia I jack-up rig was expected to begin its contract with PBR in the first quarter of 2025. The Brazilian energy firm mentioned that the rig arrived in Brazil on April 13, 2025, and is on its way to the Guaricema field in the Sergipe basin to commence well decommissioning tasks. The Guaricema field is a shallow water field located about 9 kilometers off the coast.
Strategic Focus on Decommissioning in Sergipe
The company’s operations in the Guaricema field are part of a broader decommissioning program in the Sergipe region. Petrobras’ strong focus on decommissioning activities in the area, which involve safely shutting down oil and gas facilities that have reached the end of their lifecycle, underscores its commitment to conducting safe and sustainable operations. In its Strategic Business Plan for the 2025-2029 period, PBR has projected an investment of nearly $1.7 billion in the region for the decommissioning of oil and gas infrastructure.
Details of the Arabia I Jack-Up Rig
Borr Drilling’s Arabia I jack-up rig, which was constructed in 2020, boasts a Keppel FELS B Class design. The rig has a maximum drilling depth of up to 30,000 feet and can operate in depths of 400 feet underwater. The rig has the capacity to accommodate 150 people. Its assignment in Brazil includes well intervention activities involving old oil and natural gas wells. This implies that the oil and natural gas wells that have reached the end of their asset life will be safely deactivated and capped.
The initial campaign for PBR is expected to last for seven months. After that, the rig will move on to work on other wells in the region. Petrobras has mentioned that it plans to decommission approximately 26 units in the Sergipe Basin.
PBR’s Commitment to Safety and Sustainability
PBR has prioritized safely shutting down its operations associated with the assets that are no longer in production while adhering to the highest level of environmental standards and regulations. It has noted that the decommissioning activities conducted in the Sergipe Basin are using the best and most advanced techniques, which are in line with the regulations being followed in the industry at present. This step has been described as a natural progression for the infrastructure in place, as they have been in use for well over 25 years.
The Brazilian energy giant would require the approval of designated authorities like the National Agency of Petroleum, Natural Gas and Biofuels, the federal government agency that oversees the regulations of the oil and gas industry in Brazil, the Brazilian Navy, and IBAMA to execute the required steps associated with the decommissioning process.
