Brazil’s Petrobras is expected to cancel a pair of tenders for the charter of anchor-handling tug supply vessels, as the state-controlled company begins to feel the effects of reduced demand for exploration activities in light of depressed crude prices and the Covid-19 pandemic.

Petrobras received bids earlier this year in tenders calling for the supply of 18,000-bhp-rated AHTS and AHTS-R units — which the oil giant uses to denote supply boats that have remotely operated vehicle functions.