BP’s Suspension Creates Contract Competition, Petrobras Cancels Rig Order: Energy Biz Wrap
While BP is suspended from new United States government contracts because of its role in the Gulf oil spill, military deals having a potential value in excess of $2 billion will expire in the next two years. BP has a minimum of 11 contracts that will come into play, according to spokeswoman Mimi Schirmacher for the Defense Logistics Agency, which purchases most of the Pentagon’s fuel. Schirmacher added via e-mail that the defense agency has no plans to apply for a waiver, so that it can continue to award contracts to BP, saying the the office “anticipates receiving offers from other suppliers to fill future requirements.” Among oil firms that stand to benefit from BP’s absence are Valero Energy Corporation (NYSE:VLO), Chevron Corporation (NYSE:CVX), and World Fuel Services Corporation (NYSE:INT).
Are these stocks a buy or sell? Let us help you decide. Check out our Wall St. Cheat Sheet Stock Picker Newsletter now >>
On Thursday Petrobras (NYSE:PBR) announced that it has canceled plans to rent five drilling rigs from Norway’s Ocean Rig UDW (ORIG), as the Brazilian state-operated firm said that it would not require as many rigs as it had originally anticipated. ”Higher productivity gained through the project wells” was credited for the change by the company through a statement.
Don’t Miss: Chevron and Transocean Agree to Play It Safe.