Shares in “round rig” pioneer Sevan Marine fell almost five percent Thursday, despite news the Petrobras board had finally approved a $1.01 billion drilling contract for the nearly built Sevan Driller.

Petrobras leadership insisted the rig be placed not in the higher-cost Gulf of Mexico but offshore Brazil instead. Contract terms for the six-year deal appeared to be adjusted $26 million higher with mobilization fees built-in, but after 90 percent gains in the market this month, the Sevan share corrected on the news.

The cylindrical Sevan will drill into Santos pre-salt of the type still penning in commercial production at the giant Tupi oilfield. The driller will be kitted out for work in 2,400 metres of water.

Another rig contracted to Petrobras is an idle new-build project for lack of financing. Despite the finance woes the real threat Petrobras could cancel the rig, Sevan Drilling could float as its own company by year-end.

Tags: Sevan Drilling AS