Question-and-Answer Session
Operator
Thank you, sir. We will now begin the question-and-answer session. (Operator Instructions) Our first question comes from the line of James West with Barclays Capital. Please go ahead.
James West – Barclays Capital
Hey, good morning, guys.
Todd Hornbeck
Good morning, James.
James West – Barclays Capital
Todd, you mentioned Brazil earlier, and you guys have been successful in getting into that market last year. I think we've all seen the huge budget announcement they made recently. We know about the rigs that they have tender for, we know that the helicopters, what's the outlook on the supply vessel side, I guess your outlook for tenders, bid, process and awards going forward and how many incremental vessels they might need?
Todd Hornbeck
Well, there is a lot going on in Brazil as you know. And with this recent change in commodity prices and the financial markets, I don't know whether plans will be delayed a little bit, or they will remix how they are going to contract, but there are several contracts for vessels out there right now that we are bidding on.
We are in current negotiations in Brazil. We anticipate maybe four, five more contracts to be lead this year, maybe a possible of external vessels of around 9, 10 additional vessels going into that market.
As you know Petrobras is looking at a big newbuild program for OSVs. That remains to be seen if they are actually going to contract OSVs to be built in that market. As everyone knows, construction costs in Brazil are extremely high.
We have seen construction cost of our due diligence in the market roughly to 30% to 35% higher than what we are building in the US. With that type of build cost, it remains to be seen whether Petrobras is going to go through with the build programs in Brazil and just contract in the open market.
So all of that's going to be weighted through this year, but big market, exciting. But as we always say, we enter markets very cautiously and under the right program contractually and financially before we enter. So we are excited about the market, but we will be cautious as we enter.
James West – Barclays Capital
Okay, that’s helpful, and then just one last question for me if we look at in Mexico that looks like bright spot for 2009. What are your thoughts about incremental vessels going into Mexico?
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