Brazil’s Petrobras has terminated its contract for Diamond Offshore’s semi-submersible drilling rig Ocean Valor two years early and the owner says legal proceedings could follow.
two years early and the owner says legal proceedings could follow.“The company does not believe that Petrobras had a valid or lawful basis for terminating the contract, and the company intends to defend the rights of its subsidiary under the contract,” NYSE-listed Diamond Offshore said in a filing to the US SEC today.
The drilling contract was extended in 2014 and had been scheduled to terminate in October 2018.
The rig had been earning $455,000 per day during the extension period.
