Subsea 7 takes $47 million hit in Brazil

Seven-Mar: Lost its license to a local Seven-Mar: Lost its license to a local

JUNE 1, 2016 — Oslo-listed Subsea 7 S.A. reports the early termination of the day-rate contract for its  Pipelay Support Vessel (PLSV), Seven Mar, working for Petrobras, offshore Brazil, effective May 31, 2016.

The contract was due to expire at the end of 2016 and as a result the group's backlog has been reduced by some $47 million.

Subsea 7 says that Brazilian maritime law prioritizes Brazilian-flagged vessels over international vessels of a similar specification. As a consequence, the operating license for Seven Mar has expired, resulting in the early termination of the contract

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