Brazilian oil company Petrobras has informed that an arbitration tribunal has ruled in its favor in a case related to the Sete Brasil rig orders.
Petrobras said that the arbitration tribunal rejected a claim made by an investor in Sete Brasil Participações S.A. (in reorganization). The investor sought compensation from Petrobras for alleged damages related to its investment in the Sondas Project.
"Due to the favorable outcome of these proceedings, in the 4Q19 results, Petrobras will deduct the amount of R$ 1.3 billion from the provision related to the disputes involving the company Sete Brasil. The company remains in defense of its interests in the ongoing proceedings," Petrobras said.
Related: Sembcorp Marine Discussing Sale Terms for Two Sete Rigs
To remind, Petrobras had planned to lease 28 drilling rigs from Sete in the early 2010s. Sete then ordered seven offshore drilling units worth almost $6 billion from Sembcorp Marine in 2012, and six rigs from Keppel.
However, the ensuing revelation of a corruption scandal, allegedly involving parties in all four companies, prevented Sete from paying for the ordered goods, initiating a string of arbitration proceedings.
Petrobras and Sete in December 2019 reached an agreement whereby Petrobras would charter only four rigs, and terminate contracts for the remaining 24 units.
The Brazilian oil giant will charter the rigs from Magni Partners, who is now, as part of the rig builders' settlement with Sete, in talks with Keppel and Sembcorp over the terms that will Magni take over the rigs from Sete and pay for the completion of the construction.