Brazil's economy is dynamic and growing. Over the next five years, the country plans to increase its number of operating offshore units 20% per year. With 50 offshore rigs currently operating in the region, the expected number will grow to 100 rigs working offshore Brazil by 2016.

Brazil's government recently requested the construction of 28 new offshore drilling units to be built in country by Brazilian contractors, known as the "Build in Brazil Initiative." The government awarded contracts for the first seven rigs to Brazil-based Sete, a company associated with Petrobras. The 21-rig tender is out now, and proposals are to be submitted early September.

The new rigs will be divided among a number of players. Petrobras is the obvious frontrunner for new activity as Brazil's national oil company, but Brazil has proven very receptive to allowing other oil companies into its waters. Brazil-based OGX is currently working offshore, and a number of multinational companies have been invited to participate, including Shell, BP, ExxonMobil, BG, Anadarko, and Amerada Hess.

Ensco, one of the leading contractors in Brazil, has plans for additional expansion. In February of this year, Ensco purchased Pride International, essentially leapfrogging to the number two spot on the list of the world's largest contractors. Ensco has a well-established track record with rigs spanning from Mexico to Australia, and the Pride acquisition further extends Ensco's global reach.

"One of our strategic goals at Ensco was to enter the Brazil market, one of the largest and fastest-growing deepwater basins," said Mark Burns, Ensco senior vice president, Western Hemisphere. "We also wanted to expand our fleet to include drillships. The acquisition of Pride fulfills both of these objectives while also giving us access to another major deepwater market – West Africa."

The company's expanded fleet now includes seven ultra-deepwater drillships, 13 dynamically positioned semisubmersibles, seven moored semisubmersibles, and 48 premium jack-ups, and more rigs are being added. "We currently have several technologically advanced drillships, semisubmersibles, and ultra-premium harsh-environment jack-ups under construction as part of our strategy to continually high-grade our fleet," Burns said.

One advantage Ensco has in its recent move into Brazil is the average age of its fleet. "We have the youngest ultra-deepwater fleet in the industry among the major offshore drillers," Burns said.

In addition to the legacy Pride drillships, including two under construction, Ensco has an expanding semi-submersible fleet. Five ENSCO 8500 Series semisubmersibles have been delivered, and two more will be completed next year. "The average age of our ultra-deepwater fleet is two years," Burns said. "And with our newbuild program, we will continue to have the newest ultra-deepwater fleet for some time."

Newer fleets equal newer, more efficient technology. As the company ushers in newbuilds, it plans to eventually phase out some of the older rigs in its fleet. "Although these older rigs can do a lot of the same things a new rig can do, from a customer satisfaction standpoint, the newer generation equipment seems to be what the industry wants," Burns said. "Right now, we feel as an industry that fundamentals are strong and there's market demand to absorb the new rigs being built."