Subsea 7’s PLSV terminated early as Brazilian-flagged vessel takes over

Subsea engineering, construction and services company Subsea 7 on Monday announced the early termination of the day-rate contract for its pipe-lay support vessel (PLSV), Seven Mar.

The 2001-built vessel was working for Petrobras, offshore Brazil, and the termination is effective from January 16, 2017.

The contract was due to expire in 2018 and as a result the group backlog has diminished by approximately $106 million, Subsea 7 said on Monday.

The company added that Brazilian maritime law prioritizes Brazilian-flagged vessels over international vessels of a similar specification. As a consequence, the operating license for Seven Mar has expired, which resulted in the early termination of the contract.

This is the second time for the Seven Mar to receive an early termination from Petrobras due to prioritization of Brazilian-flagged vessels. The first termination was in June last year.

However, by the end of that month, Subsea 7 substituted a vessel chartered from Solstad Offshore, the Normand Seven, for its own PLSV, Seven Mar, in a day-rate contract with Petrobras. As a consequence, Subsea 7 return Normand Seven to its owner Solstad.

Earlier on Monday, Petrobras awarded a contract of 532 days to the the first pipe-lay vessel built in Brazil, Skandi Vitória, which is owned by DOF and Technip.

Offshore Energy Today Staff

Share this article

Follow Offshore Energy Today

Events>

<< Sep 2019 >>
MTWTFSS
26 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 1 2 3 4 5 6

Offshore Energy Exhibition and Conference (OEEC)

The three-day event features an exhibition where over 600 companies will showcase their products and services…

read more >

Argentina Oil and Gas Expo 2019

The Argentine Oil and Gas Institute (IAPG) organizes the Argentina Oil & Gas Expo bringing together the most…

read more >

OEE Conference & Exhibition 2019

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

read more >

Africa Oil & Power 2019

The Africa Oil & Power conference will bring together an elite class of ministers and senior-level government…

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