Petrobras terminates Diamond Offshore rig contract two years early

Offshore drilling company Diamond Offshore has lost its contract for the Ocean Valor offshore drilling rig.

In a statement on Friday the company said that it on August 30,  received notice of contract termination from the Brazilian oil giant Petrobras for the semi-submersible drilling rig.

The drilling contract, which was extended in 2014, was estimated to conclude in accordance with its terms in October 2018.

“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,” Diamond Offshore said.

The Ocean Valor is an ultra deepwater semi-submersible drilling rig built by Sembcorp Marine’s Jurong Shipyard in Singapore. It was built in 2008 and entered service in 2009. It is an ExD Millenium model designed by Friede & Goldman. It can accommodate 164 crew members and can operate in a water depth of 10,000 ft and drill as deep as 40,000 ft.

The Ocean Valor semi-sub has been working for Petrobras since its delivery.

Offshore Energy Today Staff