Schahin plans to sue Petrobras over cancellations

Schahin plans to sue Petrobras over cancellations

San Francisco: Petrobras has cancelled charters for five offshore oil drilling and production vessels in its ongoing bid to slash costs.

Schahin Petroleo e Gas SA – specialists in drilling and workover services for oil and gas wells – plans to sue Brazil’s state-run oil giant to have the contracts reinstated.

Embroiled in a huge bribery and price-fixing scandal, Petrobras is deep in debt and has seen its position worsen with the slump in oil prices.

If the cancellations goes through Schahin, also a Brazilian company, says it would mean the loss of more than 1,000 related jobs, while creditors and investors would stand to lose more than $4bn.

The five Schahin vessels are drillships Cerrado (61,619 dwt, built 2011), Sertão (61, 619 dwt, built 2012) and Lancer (9,193 dwt, built 1977) and semi-submersible oil production platforms Amazônia and Pantanal. All had been on long-term charters.

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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