Diamond Offshore files injunction against Petrobras for rig contract termination

Diamond Offshore, a U.S. based offshore drilling contractor has reportedly taken legal action against Petrobras for the recent rig contract termination.

To remind, Offshore Energy Today has earlier reported that Petrobras had on August 30, terminated the contract for Diamond Offshore’s Ocean Valor semi-submersible drilling rig.

At the time, Diamond Offshore said Petrobras didn’t have a valid or lawful basis for terminating the contract. The driller then said it would defend rights of its subsidiary – which operates the rig – under the contract.

According to a recent report by Bank of America Merrill Lynch, Diamond Offshore filed for injunctive relief with the Brazilian courts hoping to place the rig back in service.

“A contract dispute would likely involve lengthy court arbitration, with an uncertain outcome,” Bank of America Merrill Lynch said in its report.

According to the report, the Petrobras contract termination slashed around $350 million from the driller’s backlog, or around 8% of the
ending second quarter 2016 backlog of $4.4 billion. Had it not been for the termination, the contract would have ended in 2018.

Offshore Energy Today has reached out to Diamond Offshore, seeking more information. The company did not reply.

The Ocean Valor, an ultra deepwater semi-submersible drilling rig built by Sembcorp Marine’s Jurong Shipyard in Singapore, had been working for Petrobras since 2010.

Offshore Energy Today staff

Share this article

Follow Offshore Energy Today

Events>

<< Jun 2019 >>
MTWTFSS
27 28 29 30 31 1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30

OWI LATAM 2019

Over the two-day conference, 25+ expert speakers will share exclusive insight on how to develop an integrity, production and P&A strategy…

read more >

Nigeria Oil & Gas Conference & Exhibition 2019

The annual meeting once again proved to be a great success, gathering over 700 industry professionals…

read more >

08th OIL & GAS AFRICA 2019 CONFERENCE

OIL & GAS AFRICA is one of the most prime regional & international Oil and Gas conferences in East Africa…

read more >

Gas Indonesia Summit 2019

Gas Indonesia Summit & Exhibition is returning for the fourth edition in Jakarta…

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply