Malaysian offshore energy services firm Sapura Energy said that its Brazilian joint venture with Seadrill is not affected by Chapter 11 cases filed by several Seadrill subsidiaries operating in Asia.
Sapura Energy said it was responding to media reports linking its Brazilian JV Sapura Navegacao Maritima to Chapter 11 cases unrelated to that particular joint venture.
"[Sapura Energy] states the Chapter 11 filing by Seadrill does not involve [Sapura Navegacao Maritima] or entities related to the corporate structure of the joint venture."
Sapura Energy further stressed that the Chapter 11 filing by Seadrill's subsidiaries in Asia had no financial impact on Sapura Energy's business plans and financial strength.
In the clarification, Sapura Energy also explained that the Chapter 11 filing has no effect on its contracts with Petrobras, which forms the main revenue for Sapura Navegacao Maritima; and does not trigger any cross-default for the joint venture’s business financing.
Sapura Navegacao Maritima is the only joint venture between Sapura Energy and Seadrill. Headquartered in Rio de Janeiro, Sapura Navegacao Maritima provides subsea services in the Brazilian market, with a fleet of subsea service vessels providing support, installation, and flexible pipe laying expertise to clients in the region.
According to Sapura Energy, Sapura Navegacao Maritima has a workforce of more than a thousand professionals, from 21 different nationalities.
As previously reported, offshore driller Seadrill said Sunday that Chapter 11 bankruptcy protection cases have been filed in the Southern District of Texas in respect of Seadrill's subsidiaries Seadrill GCC Operations Ltd, Asia Offshore Drilling Limited, Asia Offshore Rig 1 Limited, Asia Offshore Rig 2 Limited, and Asia Offshore Rig 3 Limited.
"The Chapter 11 cases were filed as a protective measure to support Seadrill's broader comprehensive financial restructuring and will in no way affect the safe and efficient operation of the AOD offshore drilling units," the company said.