Market Chatter: Petrobras Cancels 5 Rig Leases from Ocean Rig; Shares Slide 3%

By Staff,

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Dow Jones is reporting that Brazilian oil giant Petrobras ( PBR ) won't need as many rigs as it had initially expected, and is canceling five leased rigs from Ocean Rig ( ORIG ) because it won't have to drill as many wells due to "higher productivity gained through the project wells."

The rigs had been slated to operate in the Brazilian subsalt areas, where massive oil reservoirs have been discovered in recent years. The oil is located off Brazil's southeast coast, beneath deep Atlantic Ocean waters and several kilometers of rock-bed, including a thick layer of salt.

PBR shares are down 3.1% to $17.90, in the low end of a 52-week range of $17.27 - $32.60.

ORIG shares are down 0.3% at $15.80.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing Commodities
Referenced Stocks: ORIG , PBR

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