Vantage Drilling International announced it has been successful in its previously disclosed arbitration with Petrobras. An international arbitration tribunal issued an award in favor of Vantage Deepwater Company and Vantage Deepwater Drilling, both wholly owned subsidiaries of Vantage. The Tribunal found that Petrobras America Inc (PAI) and Petrobras Venezuela Investments & Services (PVIS), both subsidiaries of Petrobras, breached the agreement for the provision of drilling services for the drillship Titanium Explorer dated 4 February 2009 between PVIS and Vantage Deepwater Company, and which had been novated to PAI and Vantage Deepwater Drilling. The tribunal awarded Vantage Deepwater Company and Vantage Deepwater Drilling damages in the amount of $622.02 million against PAI, PVIS and Petrobras and dismissed the Petrobras entities’ counterclaims against Vantage with prejudice.
On 31 August 2015, PAI and PVIS notified Vantage of the termination of the drilling contract, claiming Vantage had breached its obligations under the drilling contract. Vantage immediately filed the international arbitration claim against PAI, PVIS, and Petrobras, claiming wrongful termination of the drilling contract.
Ihab Toma, Vantage’s Chief Executive Officer stated, “We are very pleased with the Tribunal’s decision to enforce our drilling contract with Petrobras. Above all else, we remain focused on providing superior drilling services to our clients.”