Offshore deepwater drilling specialists, Vantage Drilling, has said it received a ‘Notice’ from Brazilian state Petrobras Tuesday, terminating all drilling contracts with the firm.
Vantage Drilling said the joint ‘Notice’ from two different arms of the Brazilian national, Petrobras Venezuela Investments & Services (PVIS) and Petrobras America Inc (PAI), stated that the two firms were ‘terminating the Agreement for the Provision of Services Contract for the Titanium Explorer dated February 4, 2009’.
Breech Of Drilling Contract
Vantage Drilling have said the notice from the two arms of Petrobras, make allegations to breaches of obligations under the drilling contract.
Further, the offshore drillers state that no where in the notice, does Petrobras give any indication as to how or what obligations were breeched.
In response to the allegations, Vantage Drilling has hit out with a counter release saying that it ‘strongly disagrees with the allegations of contractual breaches made by PAI and PVIS in the Notice.’
Citing possible underhand tactics by Petrobras as an easy and cheap way of getting itself out of contract, Vantage said that it has ‘filed for arbitration to challenge the assertions made in the Notice and to assert that the Notice is a wrongful attempt to terminate the Drilling Contract.
Further, Vantage said it ‘believes that it is in compliance with all of its obligations under the Drilling Contract.’
According to sources, the drillship, Titanium Explorer, is still on location in the Gulf of Mexico.