Arbitrator rules for Petrobras in dispute with Sete Brasil

Arbitrator rules for Petrobras in dispute with Sete Brasil

Petrobras, Brazil’s state oil company, announced it has won a favourable arbitration decision in a dispute with Sete Brasil, an oil rig chartering firm that Petrobras helped to create.

Arbitrator Gustavo Binenbojm rejected a request from a Sete investor for reimbursement of nearly $96 million for investment made in the FIP Sondas equity fund which holds 95% interest in Sete Brasil.

Sete’s principal customer was Petrobras and Sete was badly hit when Petrobras’ bribes-for-inflated-contracts scandal erupted two years ago because it lost a number construction contracts for rigs that Petrobras no longer wanted to commit to.

Unable to pay for rigs it had ordered from Singapore companies Sembcorp Marine and Keppel, Sete Brasil filed for bankruptcy protection in April 2016.

Donal Scully

With 28 years experience writing and editing for newspapers in the UK and Hong Kong, Donal is now based in California from where he covers the Americas for Splash as well as ensuring the site is loaded through the Western Hemisphere timezone.

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