Petrobras Ditches Further Offshore Contracts

Published at 02:24PM - 21/09/15

Brazilian state oil and gas company, Petrobras, is attempting to walkout of further offshore contracts, the latest with oil and gas maritime firm World Wide Supply AS.

The deeply troubled state run energy company is no stranger to simply tearing up or walking out of contracts it no longer chooses to honour.

Only last week, Offshore Post reported on a contact Petrobras walked away from with over US$ 400 million left to pay. The contract was for the hire of two Offshore deepwater drillships from Paragon Offshore, due to last well into 2017.

At the beginning of September, Petrobras walked away from further contracts held with offshore drillers Vantage Drilling. 

The Vantage contract, ended work for another deepwater drillship, the Titanium Explorer.  Petrobras cited breech of contract, although no breach was ever cited.

In both cases, the companies involved were unable to comment on the effect the contract cancellations had on offshore jobs, for legal reasons.

The latest contract sees the Brazilian operators ditch two offshore platform supply vessels (PSVs), the World Opal and World Peridot.

Both vessels, delivered in 2013, and are on contract to Petrobras till July 2018.

The total backlog, worth around US$ 3 million, is unlikely to be paid, as World Wide Supply said in a press release: ‘the charterer has declared that it does not see itself obligated two pay the accrued hire through the “blocking-period”,’

Companies recently hit by Petrobras have started legal proceedings, however in a statement, World Wide Supply commented: “Dialog has been initiated with Nordic Trustee and an informal bondholders’ committee,”