Latin America’s offshore sector is drawing increased attention as the war involving Iran reshapes market views on geopolitical risk, with Brazil seen as a more stable option than the Middle East for oil and gas activity.
Constellation Oil Services Holding SA, a major supplier of deepwater drilling rigs to Petrobras, said it expects the industry to favor projects in Latin America as operators weigh regional stability alongside reserve quality. The company recently extended three offshore drilling contracts with Petrobras.
Chief Executive Officer Rodrigo Ribeiro said Brazil remains the world’s strongest market for offshore drilling. He said South America is gaining importance not only because of the quality of its reserves, but also because it is regarded as a more protected and stable geographic region.
Ribeiro also pointed to exploration prospects in other Brazilian deepwater areas, including the Equatorial Margin and the Pelotas Basin in the south of the country, where the company sees further opportunity.
Constellation Oil Services Holding SA, which was listed in Oslo last year, plans to pay $25 million in dividends next quarter, according to Ribeiro. He added that the payout could rise in the future. The company currently has a fleet of nine drilling rigs in Brazil.
