A Houston-based offshore drilling company has been awarded more than $622 million by an international tribunal in a contract dispute with Brazil's Petroleo Brasileiro SA, or Petrobras.
Vantage Drilling International filed a wrongful-termination claim against Petrobras in 2015 after the Brazilian company abruptly ended the contract for a Vantage deepwater drilling ship, the Titanium Explorer. Petrobras claimed that Vantage breached its contract, a claim the company denied before the arbitration board.
The three-member tribunal from the International Center for Dispute Resolution in a 2-1 decision found in favor of Vantage and ordered enforcement of the contract between the company and Petrobras, signed in February 2009.
"We are very pleased with the tribunal's decision to enforce our drilling contract with Petrobras," Vantage CEO Ihab Toma said in a statement.
The decision is the latest blow to Petrobras, the Brazilian national oil company. The scandal-plagued company will also pay out $2.95 billion to American investors affected by the corruption scandal known as Operation Car Wash.