Subsea 7 pipelay contract terminated by PetrobrasContracts, Tenders and Rates // January 17, 2017
Subsea 7 has confirmed the early termination of a day-rate contract for the pipelay support vessel Seven Mar, which was working for Petrobras, offshore Brazil. The contract will be terminated effective 16 January 2017.
The contract was due to expire in 2018 and as a result the group's backlog has diminished by approximately US$106 million.
Brazilian maritime law prioritises Brazilian-flagged vessels over international vessels of a similar specification. As a consequence, the operating licence for Seven Mar has expired, which resulted in the early termination of the contract.