Norwegian offshore vessel owner Siem Offshore has lost a case against Petrobras in Brazil over a late vessel delivery and will have to pay around $8 million.
Siem Offshore said Wednesday that its Brazilian subsidiary, Siem Offshore do Brasil, had been informed of the final unfavorable decision of a Brazilian court in a lawsuit filed against Petrobras.
The case is related to the late delivery of the 56.8 m long vessel Siem Marataizes from the yard back in 2016.
"A late delivery penalty charge was imposed by Petrobras on Siem Offshore do Brasil. The penalty charge has been accrued for in previous years’ accounts and will not have any impact on the profit and loss account for 2022.
"The unfavorable decision of the court amounts to a cash payment equivalent to around USD 8 million," Siem Offshore said.
The Ulstein-designed vessel is designed for oil spill recovery and has platform supply vessel functionalities, too. The vessel was delivered on February 29, 2016 and started to work for Petrobras on an eight-year contract.
Worth noting, earlier this year, Siem Offshore lost a similar case, where a Brazilian court ruled in favor of Petrobras in a case related to a late delivery of another vessel built to fight and contain oil spills, in 2015.
The vessel in question was Siem Maragogi, of the same type as the Siem Marataizes, and Siem Offshore said at the time that the unfavorable decision of the court would have a negative cash effect equivalent to $4.8 million.
Siem Offshore said in August it had secured a new 3-year contract for the “Siem Maragogi” in direct continuation of the current contract in Brazil.