Subsea 7 S.A. (Oslo Børs: SUBC, ADR: SUBCY) today announced the early termination of the day-rate contract for Subsea 7’s Pipelay Support Vessel (PLSV), Seven Mar, working for Petrobras, offshore Brazil, effective 31 May 2016. The contract was due to expire at the end of 2016 and as a result the Group backlog has diminished by approximately USD 47 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.
Subsea 7 S.A. is a leading global contractor in seabed-to-surface engineering, construction and services to the offshore energy industry. We provide technical solutions to enable the delivery of complex projects in all water depths and challenging environments.