Subsea 7 informed about the early termination of the day-rate contract for its pipelay support vessel (PLSV), Seven Mar, working for Petrobras, offshore Brazil.
According to the company, the termination is effective May 31, 2016.
The contract was due to expire at the end of 2016, and as a result Subsea 7 said its backlog has reduced by approximately USD 47 million.
“Brazilian maritime law prioritises Brazilian-flagged vessels over international vessels of a similar specification. As a consequence, the operating licence for Seven Mar has expired, which resulted in the early termination of the contract,” the company said in Oslo Stock Exchange filing on Wednesday.