Petrobras must pay $622M for Vantage contract termination

Brazil’s Petrobras will have to pay Vantage Drilling $622.02 million for drilling contract breach.

Titanium Explorer drillship (Image source: Vantage Drilling)
Titanium Explorer drillship (Image source: Vantage Drilling)

Vantage Drilling said on Tuesday that an international arbitration tribunal issued an award in favor of Vantage Deepwater Company and Vantage Deepwater Drilling, Inc., both wholly-owned subsidiaries of Vantage.

According to the offshore driller, the Tribunal found that Petrobras breached the agreement for the provision of drilling services for the Titanium Explorer under the drilling contract signed on February 4, 2009, which had then been novated.

The Titanium Explorer, a self-propelled, dynamically positioned drillship suited for drilling in remote locations, started its $1.6 billion, eight-year contract with Petrobras in December 2012.

On August 31, 2015, Petrobras notified Vantage of the termination of the drilling contract, claiming Vantage had breached its obligations under the contract. Vantage Drilling then filed the international arbitration claim against Petrobras and its relevant subsidiaries claiming wrongful termination of the drilling contract.

Vantage said the tribunal awarded Vantage damages in the amount of $622.02 million against Petrobras and dismissed the Petrobras entities’ counterclaims against Vantage with prejudice.

Ihab Toma, Vantage’s Chief Executive Officer, stated, “We are very pleased with the Tribunal’s decision to enforce our drilling contract with Petrobras. Above all else, we remain focused on providing superior drilling services to our clients.”

Offshore Energy Today Staff

Share this article

Follow Offshore Energy Today

Events>

<< Aug 2019 >>
MTWTFSS
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 31 1

OEE Conference & Exhibition 2019

OEE2019 is organised by Ocean Energy Europe, the industry association representing ocean energy in Europe.

read more >

Shanghai Int Petrochemical and Offshore Oil & Gas and Chemical Industry Technology and Equipment Exhibition 2019

cippe Shanghai has attracts both…

read more >

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 >

Uganda International Oil and Gas Summit 2019

Uganda International Oil & Gas Summit will once again examine the industry’s developments…

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