Keppel Corp. (BN4.SG) off 0.9% at $10.88 and SembCorp Marine (S51.SG) +0.2% at $5.09 after offshore & marine newspaper Upstream reports Petrobras is set to cancel a tender for chartered ultra-deepwater rigs, which would be built in Brazil (the tender’s Section C), after receiving bid prices more than 20% above average global rates.

“This is not surprising...we had earlier noted that there were no international drillers in Section C, as international players could be deterred by higher costs of building the units in Brazil,” says local broking house in a report.

Adds, Keppel is the only Singaporean yard participating in this section, leading the market to expect Keppel to win more work vs SembMarine.

But says the situation is “fluid” and “nothing is guaranteed until the final award of rigs.” Though it is still too early to conclude who the winners are, the house remains optimistic about Keppel’s and SembMarine’s chances.