Brazil's Petrobras cancels purchase of rigid pipelines from McDermott (updated)

McDermott International

05/05/2022 14:55

(Adds details)
    SAO PAULO, May 5 (Reuters) - Brazilian state-run oil company
Petrobras  PETR4.SA  said on Thursday it has canceled a deal to
purchase rigid pipelines from McDermott International Ltd
 MCDIF.PK  after the U.S.-based firm refused to sign the
contract it was awarded.
    The pipelines were set to be part of the Tupi oil field's
Water Alternating Gas (WAG) Full Field initiative, which is
aimed at enhancing the offshore asset's recovery factor,
Petrobras said in a statement.
    It added that it was still assessing the financial impact
from the canceled deal, as well as potential penalties.
    McDermott did not immediately respond to a request for
comment.
    Petroleo Brasileiro SA, as the company is formally known,
said it would look for new strategies to develop Tupi's WAG
initiative, in which it holds a 67.22% stake.
    Shell PLC  SHEL.L  has a 23% stake, Petrogal has a 9.2%
interest and PPSA has a 0.5% stake in the asset.

 (Reporting by Gabriel Araujo
Editing by Paul Simao)
 ((Gabriel.Araujo2@thomsonreuters.com; +55 11 5644 7745;))