Houston-based Ensco received a cancelation notice from Brazilian giant Petrobras for the DS-5 drilling rig, citing improper payments.
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Image of the Ensco DS-5 drillship. Courtesy of Ensco. |
Last year, Petrobras had alleged that there were irregularities regarding the drillship prior to Ensco’s acquisition of Pride International, Inc. in 2011.
“Without specifying any supporting facts or conduct, Petrobras' notice alleges that Pride had knowledge that the shipbuilder of DS-5 made improper payments to the former third-party marketing consultant who then shared the improper payments with former employees of Petrobras and that Pride may have assisted in or facilitated these improper payments,” Ensco said in a Form 8-K filing.
Petrobras sent the notification earlier this week, with the belief that the DS-5 drilling service contract was void effective 4 January 2016.
However, Ensco disagrees with the allegations and said that the company has found no evidence that Pride, Ensco or any current or former employees were aware of or involved in any wrongdoing, or authorized the former third-party marketing consultant to engage in any wrongdoing on behalf of Pride or Ensco with respect to the DS-5 shipbuilding contract.
“Ensco disagrees with Petrobras' assertion that the DS-5 drilling services contract is void and intends to assert its legal rights under the drilling services contract,” Ensco said.
Ensco has responded to Petrobras, notifying them of its position with no assurance that the Brazilian company will continue with its contractual obligations, or that Ensco will be able to enforce its legal rights.
The Ensco DS-5 is a Samsung S10000E design, 751.3ft by 137ft. It is equipped to work in up to 10,000ft water depth, and a drilling depth of 40,000ft.
Ensco currently has four semisubmersibles under contract with Petrobras, which include the Ensco 6001, 6002, 6003 and 6004.
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