Petrobras to pay $622 mln for contract breach

Brazil

BRASíLIA, July 3, 2018 – An international tribunal has ordered Brazilian NOC Petrobras to pay USD 622 million to the USA’s Vantage Drilling due to a breach of contract, international media reported Monday.

The contract in question, for the provision of a drillship to Petrobras America and Petrobras Venezuela Investments by subsidiary Vantage Deepwater, was signed in 2009. Following an investigation to determine whether the contract had been ethically awarded, in 2015 the NOC ended the deal with Vantage, which then filed a “wrongful termination” claim.

Petrobras executive Jorge Zelada was charged with corruption in relation to the contract award, and was given a more than 12-year prison sentence.

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