Subsea 7 has had its day-rate contract for the pipelay support vessel Seven Mar terminated early after the vessel lost its operating license.
Brazilian maritime law prioritizes Brazilian-flagged vessels over international vessels of a similar specification. As a consequence, the operating license for Seven Mar expired, resulting in the early termination of the contract.
The vessel was working for Petrobras, offshore Brazil, and had been due to end at the end of 2016. Subsea 7 loses US$47 million in backlog due to the early termination.