Vantage indignant over contract cut

Brazil

BRASILIA, September 2, 2015 – Brazilian operator Petrobras has terminated its contract with Vantage for its drillship rig Titanium Explorer, Vantage reported on Wednesday.

The contract, signed in February of 2009, was an eight-year deal at a rate of $585,000 per day. Vantage “strongly disagrees” it had breached contract, and has promised to take legal action.

“The notice alleges that Vantage has breached its obligations under the drilling contract,” said Vantage CEO Paul Bragg in a statement. “The notice does not provide any explanation as to the facts and conduct that constitute a breach by Vantage of its obligations under the drilling contract.”

The contract’s termination comes on the heels of a massive corruption investigation dubbed “Operation Car Wash” against Petrobras. Contracts for assets such as Venture’s Titanium Explorer were allegedly used to siphon millions of dollars to politicians and businessman.

The Brazilian press also alleged Sevan Drilling, Sembcorp Marine, Keppel Offshore & Marine and SBM Offshore were involved in the corruption scandal.

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