Diamond Offshore files injunction against Petrobras over early termination of rig contract

Diamond Offshore files injunction against Petrobras over early termination of rig contract

Houston-based Diamond Offshore Drilling has filed an injunction against Brazil’s state oil company Petrobras over the early termination of a rig contract.

The contract for the Ocean Valor semi-submersible rig was supposed to run until October 2018 but was terminated on August 30. It had been costing Petrobras $455,000 per day.

Petrobras is the world’s most indebted oil company and is at the epicenter of a huge, complex corruption case involving bribes for inflated contracts.

The injunction means the rig could continue to work while the legal case plays out.

Last November NYSE-listed Diamond Offshore had agreed on the early termination of two other rig contracts with Petrobras. But that deal included the Ocean Valor deal being extended.

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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