She lies in Guanabara Bay, in plain sight, yet increasingly difficult to explain.
Anyone navigating toward Niterói will recognize the outline: the hull of Varada Santos, still, without visible activity, without a flag, without any declared purpose. A formerly working offshore vessel, designed for constant operation, now reduced to a static presence—silent, exposed, and unresolved.
And yet, the data tells a different story.
The AIS signal associated with Varada Santos was last recorded in 2024 in Southeast Asia, far from Brazilian waters. This alone introduces a contradiction that cannot be easily dismissed: a vessel physically present in Guanabara Bay, while its digital footprint places it on the other side of the world—unfortunately, not uncommon.
The background of the vessel only deepens the complexity.
Varada Santos entered Brazil as an operational unit under the ownership of Varada Marine AS, within the REPETRO regime, with Galáxia Marítima S.A. acting as importing custodian for Petrobras. Under this framework, the vessel was required to remain in the country, dedicated to offshore activities, under the full responsibility of its operator.
What followed was a familiar pattern in the sector.
Varada Marine AS failed. Structures linked to SEPTEM surfaced within the same legal chain. The asset became entangled in judicial proceedings, culminating in a court-led auction in Brazil. At that point, Galáxia Marítima itself acquired the vessel, consolidating its position from operator to owner of record.
On paper, the trajectory is clear. In practice, it is not.
As REPETRO custodian and subsequent acquirer of the asset, Galáxia Marítima carries responsibility for its regulatory and operational standing. At the same time, the company has been repeatedly associated with operational disruptions, including widely reported cases involving crew abandonment and vessels reverting to prior owners, such as GNL 1001 and GNL 1008.
Taken together, the pattern raises a broader concern about asset control, accountability and regulatory consistency.
Varada Santos remains where it is—visible, tangible, undeniably present.
Our team tried to contact Galáxia both by email and by phone, but without success.
There is a certain seduction in simple narratives.
Petrobras sold a 50% stake in Tartaruga Verde and the Module III of Espadarte to PETRONAS in 2019 for roughly US$1.2 billion. Six years later, it is buying that same stake back for approximately US$450 million. The conclusion, widely circulated in market commentary, appears self-evident: Petrobras sold high, PETRONAS bought high — and then sold low.
It is a compelling story. It is also, on closer inspection, fundamentally misleading.
What appears to be a case of value destruction is, in reality, a case of value extraction — and a useful lens through which to understand how capital has actually been deployed in Brazil’s upstream sector.
The first source of confusion lies in the numbers themselves. The US$1.2 billion headline in 2019 incorporated economic adjustments, including cash flows generated between the effective date and closing, implying a lower underlying asset valuation. The repurchase price today is likewise subject to interim performance adjustments. Even after normalising for these effects, however, PETRONAS is exiting at a lower nominal price than it entered.
But upstream economics are not determined at entry or exit alone. They are determined in the years in between — in the conversion of reserves into cash.
When PETRONAS acquired its stake, Tartaruga Verde was at a particularly attractive point in its lifecycle. Capital expenditure had largely been deployed, production was near peak, and the asset was transitioning into a cash-generative phase. For a non-operating partner, this is precisely where value tends to concentrate.
Over the following years, that positioning proved advantageous. Production remained resilient in the early period, oil prices recovered sharply post-pandemic, and the asset delivered exposure to offshore barrels without incremental capital burden. In effect, PETRONAS did not simply acquire reserves in the ground, but barrels already in motion — and monetised them at favourable points in the cycle.
By the time of exit, the picture had shifted. Production had declined, the asset had matured, and the remaining reserves offered a less intense near-term cash profile. To focus on the exit price without accounting for the cash extracted along the way is to miss the central economic logic of the transaction.
Our analysis suggests that PETRONAS likely recovered its initial investment through cumulative cash flows over the holding period. The exit price, therefore, should be seen not as the return itself, but as what remained after the return had already been realised. This is closer in nature to a private equity-style strategy: enter post-development, harvest cash during a favourable cycle, and exit before the steeper phase of decline. Such strategies are not designed to maximise terminal value, but to optimise internal rate of return — and on that measure, the transaction stands out.
Placing this deal within the broader Brazilian M&A landscape reinforces the point. Mapping transactions across execution risk and expected returns reveals a wide dispersion of outcomes. A small subset of deals — typically driven by timing or targeted operational intervention — cluster in the high-return, controlled-risk quadrant. PETRONAS’ investment in Tartaruga Verde fits squarely within this group. Others, driven by scale or consolidation, tend to deliver more institutional returns, while more complex portfolios — often involving operational integration or technical challenges — carry higher risk without necessarily offering proportionate upside.
Within this framework, Petrobras’ re-entry sits in a different category altogether. The implied returns are more moderate, but the rationale is not primarily financial arbitrage. Rather, it reflects a strategic decision to consolidate control over a producing asset in which the company is already operator, simplifying governance and potentially unlocking operational synergies across its portfolio.
This distinction is essential. PETRONAS approached the asset as an investor, optimising for cash yield and timing. Petrobras is approaching it as an operator and long-term holder, optimising for control and integration. The same barrels can support different valuations depending on the strategy applied to them.
More broadly, the transaction exemplifies a recurring feature of the Brazilian upstream market: asset quality alone does not determine outcomes. Several of the most successful deals in recent years have involved mature or technically complex fields. What differentiates performance is not geology, but execution — and, in some cases, simply timing. The same asset, under different operators or strategies, can produce materially different returns.
Viewed in this light, the Petrobras–PETRONAS sequence is less a contradiction than a transition. In 2019, Petrobras divested a non-core stake to optimise its balance sheet, while PETRONAS entered to capture yield. In 2025, those roles have effectively reversed: PETRONAS exits after harvesting value, and Petrobras re-enters to reinforce its core portfolio. Both decisions are internally consistent. The perceived asymmetry arises only when they are judged through the same lens.
The broader lesson is straightforward, if often overlooked. In upstream oil and gas, value is rarely created at a single point in time. It is created along the production curve — through timing, execution, and strategic alignment.
For those focused solely on headline prices, the Petrobras–PETRONAS deal may appear puzzling. For those looking at the full economic cycle, it is something else entirely:
A well-executed trade on one side, and a strategic repositioning on the other.
What else?
“Coming soon…
I’ve seen a number of takes suggesting that PETRONAS “lost money” on this deal — buying high and selling low.
The reality is quite the opposite.
When you properly unpack the cash flows, timing, and production profile, this turns out to be one of the most efficient upstream trades executed in Brazil in recent years.
Following this divestment, PETRONAS would rank 1 in my Brazil oil and gas deal league table — not despite the exit price, but because of it.
As for Petrobras, the narrative is more nuanced.
Selling at ~US$1.2 billion and re-entering at a fraction of that does not, in itself, define value creation or destruction. The economics sit beneath the headline numbers — and the strategic rationale is far more complex than the surface suggests.
More to come.”, reflects Alexandre Vilela, CEO of WSB Advisors.
PRIO reported that it has received from Ibama an amended drilling license for the Frade Field. With this authorization, the company will be able to drill up to 14 new wells in the asset, located in the Campos Basin.
The operation is expected to be carried out using the offshore drilling unit Hunter Queen, capable of operating in deepwater environments and supporting both drilling and intervention campaigns. The unit was acquired by PRIO from Foresea in 2022. The field is currently operated by the FPSO Valente, which has a production capacity of up to 100,000 barrels per day. In the fourth quarter of 2025, Frade recorded an average production of approximately 31,500 barrels per day.
The unit is characterized as a 6th-generation semi-submersible drilling rig equipped with dynamic positioning, capable of operating in water depths of up to 3,000 meters and supporting complex offshore drilling campaigns. Built in 2011 in Singapore, it can accommodate around 180 personnel.
PRIO also stated that it will disclose the schedule for the new drilling activities in due course.
Petrobras announced the acquisition of the 50% stake held by Petronas in the Tartaruga Verde and Espadarte fields, located in the Campos Basin, for US$450 million. As a result, the company will hold 100% ownership of the assets and remain the operator.
The deal effectively represents a buyback. In 2019, Petrobras sold the same stake to Petronas for approximately US$1.29 billion. By reacquiring it at a lower price, the company secures a more capital-efficient position while regaining full control of the fields.
The move also affects Brava Energia, which had been in negotiations to acquire the assets. Following the announcement, the company confirmed it has terminated talks with Petronas and stated it will be reimbursed for any amounts previously paid, with no financial loss.
The fields currently produce around 55,000 barrels of oil per day and are tied back to an FPSO. With full ownership, Petrobras will be able to optimize existing infrastructure, connect additional wells, and potentially increase production.
According to the company, the acquisition aligns with its strategy of focusing investments on higher-return assets and strengthening its position in the oil and gas sector.
Oceânica Engenharia has signed a series of subsea service contracts with Petrobras totaling approximately US$736 million, according to company disclosures. Agreements have a four-year duration, with offshore operations expected to begin in the first half of 2027 and extend through 2031.
Contracts include renewal of charter agreements for several vessels in Oceânica’s diving support fleet, which will continue providing inspection, maintenance and subsea intervention services across Petrobras’ offshore production systems.
Oceanicasub VII (Source: Ocêanica)
Fleet scope
SDSV vessels (Shallow Diving Support Vessels): Oceanicasub IV, V, VII and IX
Services: inspection, maintenance and subsea intervention
Assets deployed: workclass ROVs, electric ROVs and diving systems
RSV segment: contract renewal for Oceanicasub VIII
Company also announced addition of Oceanicasub VI to its subsea fleet, expanding operational capacity.
According to Oceânica, agreements increase backlog to around R$12 billion. Earlier in January 2026, company had already secured contract for Oceanicasub XV, valued at approximately R$500 million.
Our view: What’s behind these developments
A new contracting cycle is underway
Brazil is entering a new subsea contracting cycle. A significant share of vessel contracts signed between 2018 and 2021 is reaching expiration between 2025 and 2027, triggering a wave of renewals and new tenders.
Market is now seeing:
renewal of existing vessel contracts
extension of ongoing offshore campaigns
gradual addition of new vessels
This cycle is expected to sustain demand for subsea support services through the end of the decade.
Pre-salt growth continues to drive demand
Expansion of infrastructure in Santos Basin remains the primary demand driver.
Each new development adds complex subsea systems, including:
subsea trees
manifolds
flowlines
injection and control systems
As this network grows, operators require continuous vessel support for inspection, maintenance and intervention.
Demand becomes structural — not tied only to new field start-ups.
Positioning of SDSVs
Recent tenders highlight consistent utilization of SDSVs (Shallow Diving Support Vessels) in shallow and mid-depth intervention scopes.
These vessels combine:
ROV capability
diving systems
direct subsea intervention capability
This configuration allows operators to execute maintenance campaigns with lower mobilization costs and faster response times, particularly for less complex intervention scopes.
Petrobras shifting back to longer contracts
Another clear trend is return to longer contract durations.
After a period of shorter agreements (2–3 years), recent tenders from Petrobras are increasingly structured around four-year terms or longer.
Longer contracts:
secure vessel availability
provide revenue visibility for contractors
support fleet upgrades and operational planning
Fleet expansion in a concentrated market
Brazil is consolidating one of the largest subsea support vessel clusters globally, concentrated in Santos Basin.
Key hubs include:
Búzios Field
Mero Field
Sépia Field
Atapu Field
Each new FPSO increases subsea complexity and reinforces long-term demand for vessel support.
Backlog reflects scale of the cycle
Oceânica’s R$12 billion backlog highlights scale and visibility of current cycle.
Multi-year contracts are providing:
predictable cash flow for contractors
sustained fleet utilization
support for continued offshore expansion
Brazil is consolidating its position as one of the largest global markets for subsea support vessels, supported by scale of its pre-salt infrastructure.
WSB is pleased to provide an update on the current long-term tenders that are open to offer. What has changed?
Petrobras At least 1x FSC 10: Opportunity 7004536339, new deadline March 17th, 2026 Petrobras Up to 4x SOVs: Opportunity 7004563745, new deadline March 25th, 2026
What else is happening?
– Norbe IX has departed its anchorage near Angra dos Reis following a 58-day scheduled maintenance and upgrade period and is now mobilizing to begin drilling operations in the Santos Basin.
– Constellation Oil Services drillship Amaralina Star, a 6th-generation unit equipped with MPD (Managed Pressure Drilling), has commenced a new contract with Petrobras, supporting exploratory drilling campaigns offshore Brazil.
Event brought together naval sector executives at Fogo de Chão in Botafogo to discuss decarbonization, geopolitics, and new IMO requirements
On the evening of March 12th, WSB Advisors was present at the workshop “Promoting a Sustainable Transition for Shipowners and Charterers: Metizoft PowerSave and Strategic Alignment with New Maritime Sector Regulations,” hosted by Vitor Máximo of Norwegian company Metizoft. The event gathered prominent executives in one of the rooms at the renowned Fogo de Chão restaurant in Botafogo, Rio de Janeiro.
The agenda was substantive and well-managed, balancing technical presentations with strategic discussions about the challenges shipowners and charterers will face in the coming years—and in many cases, are already facing today.
A Tool for the Times We Live In
Metizoft opened the proceedings by presenting PowerSave, their online platform designed for energy management, fuel consumption control, and pollutant emissions monitoring on cabotage and offshore vessels. Through a real-time visual demonstration, attendees were able to follow the tool’s functionalities and, above all, its ease of use—a decisive factor for adoption by shipowners.
The Weight of Regulation
Next, Commander Fernando Alberto of the Brazilian Navy delivered a presentation on the implications of IMO resolution MEPC.377(80), adopted in 2023 as part of the global fleet decarbonization program through 2030. It was a necessary discussion, still laden with practical questions about its implementation.
Geopolitics, Oil, and Innovation at Sea
Captain Jones A. B. Soares, director of maritime transport at Transpetro, delivered one of the most anticipated presentations of the evening. With a comprehensive and well-grounded perspective, Jones contextualized the current geopolitical landscape—including the impacts of the Middle East conflict on the oil supply chain and long-term price projections in the international market.
He also presented an overview of Transpetro’s current fleet and shared a thought-provoking figure: maritime transport accounts for approximately 3% of global pollutant emissions. While a small slice, it’s one the sector has been working to reduce. Jones highlighted the advances already achieved by the company, including new hull designs, the use of cutting-edge anti-fouling paints, and the adoption of onboard equipment with lower energy consumption—technologies that, together, are already changing the fleet’s consumption profile.
Networking and Closing
To close out the evening, guests were invited to a relaxed networking cocktail hour, which allowed for deeper conversations begun during the presentations and strengthened connections within the sector. In attendance were several important names in shipping, including engineer Djalma from Transpetro, Commander Resano from Syndarma, and members of FIRJAN and the Naval Technology Cluster.
Engineer Paulo Rolim, consultant and board member at WSB Advisors, and Romulo Bacchiega, head of content and sales at Westhon Media, left the event with the clear sense that the energy transition in the maritime sector is no longer a future discussion—it’s happening now, with regulations in force, technologies available, and decisions that need to be made. Being present at these gatherings, alongside the key players in the naval market, is an essential part of our commitment to closely monitoring the transformations shaping the market in which we operate.
The ultra-deepwater drillship Norbe IX has departed its anchorage position off Angra dos Reis, Rio de Janeiro, ahead of the start of a three-year drilling contract valued at approximately US$417 million with Petrobras, according to an official statement released by Foresea. Operations are scheduled to begin in early 2026 in Brazil’s pre-salt province.
The unit had remained approximately 6 nautical miles off Angra dos Reis since early January 2026, undergoing a planned maintenance stop of around 60 days ahead of the upcoming campaign.
Source: Alexandre Vilela/WSB Advisors
Scope of maintenance included:
– Drilling equipment – Thrusters – Diesel generators – BOP system – Fire and gas detection upgrades – DNV class renewal – Piping replacement and general hull painting
Such maintenance windows are typical ahead of new offshore drilling campaigns, ensuring full operational readiness prior to mobilization. Contract highlights
– Operator: Petrobras – Fields: Sépia Field and Itapu Field – Basin: Santos Basin – Term: ~ 3 years – Contract value: ~ US$417 million, including mobilization fees – Start of operations: early 2026
Built in 2011 at Daewoo Shipbuilding & Marine Engineering, Norbe IX is a DP3 dynamically positioned ultra-deepwater drillship designed for high-spec offshore drilling campaigns. The unit is capable of operating in water depths up to 3,048 m (10,000 ft) and drilling wells to approximately 12,195 m (40,000 ft). Accommodation capacity is around 180 personnel, with a 15,000-psi BOP system.
The vessel measures 238 m LOA with a 42 m beam, placing it among the high-spec drillships currently active in Brazil’s ultra-deepwater segment.
With this award, Foresea reported its fleet fully contracted through at least late-2026, reflecting sustained demand for ultra-deepwater drilling capacity supporting Brazil’s expanding pre-salt drilling programs
In the last day of 2025, Copacabana’s New Year’s Eve celebration in Rio de Janeiro entered the Guinness Book of Records as the largest in the world. The spectacle held along Brazil’s most iconic beachfront brought together around 2.6 million people and featured Camorim as a key player in the complex fireworks operation.
Responsible for supporting the scale of the event, Camorim led the maritime operation with excellence, mobilizing 150 professionals and 46 vessels — including 19 barges, 14 tugboats, 12 speedboats, and one shear crane. It was the work of hundreds of hands that, year after year, ensures the safety and visual impact that have made Copacabana a global New Year’s Eve reference.
Although Camorim’s operations also extend to other major New Year’s Eve celebrations, it is in Copacabana that the company carries out its most emblematic operation. The transition from 2025 to 2026 featured 12 minutes of fireworks, performances by samba schools, and artists from different musical genres, further elevating the spectacle.
The operation begins long before the countdown
The New Year’s Eve machinery starts turning weeks in advance. On December 20, the barge preparation process was completed at Camorim’s bases. Between December 21 and 25, the fireworks were assembled and organized. On December 28 and 29, the pre-anchoring operation was carried out — an essential stage to ensure the vessels remain securely positioned during the fireworks display.
The official countdown to the New Year began on December 30. From 7:00 p.m. onward, the barges were towed to Copacabana and strategically positioned along the shoreline, in a process that lasted until the morning of December 31. Still on the last daay of the year, Camorim teams monitored the transverse alignment of the barges in relation to the beach, while the Harbor Master’s Office inspected each stage of the operation.
Final authorization for the fireworks display, granted by the Navy at 11:30 p.m. on December 31, depends on weather conditions — a factor that requires heightened attention and immediate response capability. In some years, this clearance is given only in the final minutes, underscoring the importance of experience and trust in the team.
While the public celebrates, the operation continues. A group of ten professionals monitors the entire process on land, and about one hour after the fireworks end, the dismantling process and return of the barges to the company’s bases begins — an operation completed only on the morning of January 1.
More than a spectacle, Copacabana’s New Year’s Eve celebration is the result of planning, technical expertise, and dedication — pillars that Camorim has been upholding for decades on the world’s largest New Year’s stage.
“Many teams have been working in Copacabana for years. Families understand the magnitude of the responsibility. While millions celebrate on the beach, our professionals remain alert, ensuring everything happens with maximum safety.” , says João Guerra, Camorim’s commercial manager.
“We recognize the efforts of our employees. They are true heroes. They work with commitment, responsibility, and care so that this great celebration can take place”, Guerra adds.
About Camorim
Camorim is a 100% Brazilian company with 30 years of experience in the national maritime sector. Considered a 360° hub in the provision of comprehensive logistics and navigation solutions, the corporation employs more than 1,300 people, creating opportunities along the entire Brazilian coast. Among the services offered by the company are port towing, port logistics, and offshore support.
With more than 150 vessels, Camorim operates the most diversified fleet in Brazil, comprising tugboats, LHs, PSVs, AHTSs, OSRVs, cargo barges, water barges, sheerleg cranes, and speedboats (both cargo and passenger).
C Maceio (Source: Camorim)
Camorim owns a modern shipyard located on Ilha da Conceição in Niterói, where it operates a Private Use Terminal. In addition, the company has three strategically located operational bases (two in Niterói and one in Vitória, in the state of Espírito Santo), expanding support for maritime operations.
The company also operates in ports located in the states of Rio de Janeiro, São Paulo, Espírito Santo, Paraná, Rio Grande do Sul, Pará, and Maranhão.
Built in February 1963 by Fujinagata Shipyard in Japan, the vessel originally named Petrobras Oeste was designed with a clear mission: transport LPG along Brazilian waters. Powered by a B&W engine, with approximately 4,323 DWT and IMO 5407784, it was part of Petrobras’ fleet at a time when Brazil was beginning to build its own energy infrastructure.
But the sea has a long memory. And ships often carry stories that do not end where many expect.
In the mid-1980s, Petrobras Oeste and its sister vessel Petrobras Nordeste (IMO 5412997) were decommissioned and sold at auction as scrap. Petrobras Oeste was acquired by Brasilmar, while Petrobras Nordeste went to Metalnave.
At first, the cycle seemed complete. The vessels had fulfilled their mission and would likely end their lives as scrap metal.
That was not what happened.
Metalnave S.A., a company that at the time operated tugboats and bunker barges in Guanabara Bay, Rio de Janeiro, controlled by entrepreneur Frank Wlasek, acquired Petrobras Nordeste.
The auction contract required the vessels to be scrapped, prohibiting conversion or repair for use as merchant ships. After a lengthy legal dispute, Metalnave proved its right to convert and repair the vessel as its new owner. The company rebuilt and adapted Petrobras Nordeste to transport butadiene, renaming it Metaltanque I.
Brasilmar, after acquiring Petrobras Oeste, made no changes to the vessel. Metalnave later purchased it and took an even more ambitious step: converting it into a semi-refrigerated vessel.
The refit was carried out by Metalnave’s technical team, led by its technical director, engineer José Ruiz, a professional with a long career in the Brazilian shipbuilding sector. The challenge was significant: transform an old pressurized gas system from a vessel purchased as scrap into a modern semi-refrigerated plant capable of transporting gaseous chemical products. At the time, much of the domestic market considered the project virtually impossible.
Yet it was done.
The result was Metaltanque II. Before its final conversion and renaming, the vessel operated for a few years under the name Triunfogas. After the transformation, it entered service transporting chemical cargoes in Brazilian cabotage, serving demanding clients such as Braskem and Dow Química. With the incorporation of the two vessels, Metalnave S.A. also became a cabotage shipping company.
More than a commercial twist, the episode demonstrated that Brazilian naval engineering was capable of revitalizing complex assets and returning them to the market in full operational condition — challenging the skepticism that long limited the sector’s ambitions.
Today, Metaltanque II is inactive at Renave, in Niterói, Rio de Janeiro, at Ilha do Vianna. Those who visit the site find a vessel at rest, but not destroyed. It is not in a deplorable state. It stands like a ship that has simply paused after a long journey — somewhat worn, yet still present.
TotalEnergies announced start-up of the Lapa South-West project, located in Santos Basin about 300 kilometers offshore Brazil. Development includes three subsea wells tied back to FPSO Cidade de Caraguatatuba, production unit currently operating in Lapa Field.
With an estimated investment of around US$1 billion, project is expected to increase field output by 25,000 barrels of oil per day, bringing total production from Lapa to approximately 60,000 barrels per day, as quoted by Repsol.
Discovered in 2007, Lapa is located in water depths of roughly 2,140 meters in central portion of Santos Basin. First production started in 2016 through the FPSO Cidade de Caraguatatuba. Field is operated by TotalEnergies with 48% stake, in consortium with Shell (27%) and Repsol Sinopec Brasil (25%).
According to Nicolas Terraz, President of Exploration & Production at TotalEnergies, the start-up represents another milestone for the company’s portfolio in Brazil, considered a key growth country for its upstream operations.
Seatrium confirmed successful first gas injection on FPSO P-78, achieved 61 days after first oil on December 31, 2025.
Unit is installed at Búzios Field in Santos Basin, approximately 180–230 km offshore Rio de Janeiro, and operates for Petrobras.
Key unit specifications:
• Oil production capacity: 180,000 b/d • Gas processing: 7.2 million m³/d • Storage capacity: 2 million barrels • First oil: December 31, 2025 • First gas injection: March 2026
Construction involved module fabrication, integration and commissioning across shipyards in Asia and Brazil, executed in partnership with Petrobras.
FPSO P-78 forms part of new generation of units being delivered by Seatrium for Petrobras. Combined developments are expected to add around 1.3 million b/d to Brazil’s offshore production capacity over coming years.
