Petrobras to appeal Dutch ruling favorable to U.S. oil firm Vantage (updated)

Vantage Drilling

29/08/2018 15:55

(Adds no immediate comment from Vantage, details from filing)
    SAO PAULO, Aug 29 (Reuters) - Brazil's state-run oil company
Petroleo Brasileiro SA  PETR4.SA  said on Wednesday it will
appeal a Dutch court ruling related to the suspension of a
drilling contract with U.S.-based Vantage Drilling Co
 VTGDF.PK . 
    Petrobras said it was informed that a Dutch court had
granted a request by the U.S. oil services company to seize
shares of two subsidiaries, among other assets.
    "The company will seek all legal measures to overturn the
arbitration ruling and to defend its position," Petrobras said
in the securities filing. 
    Vantage did not immediately respond to a request for comment
on Wednesday. On Tuesday, a spokesman said that Petrobras had
shown itself unwilling to honor its obligation to pay the $622
million award. Vantage "was compelled to [seek asset seizures]
to protect the integrity of the arbitration award."
    Petrobras said in the securities filing that Vantage's
arbitration proceedings against the company relates to a
contract that was canceled as part of "Car Wash," a corruption
investigation into payment of bribes in exchange for contracts.
    Petrobras said the Vantage contract was awarded "by way of
corruption" according to the findings of the investigation.
    In 2016, Petrobras executive Jorge Zelada was sentenced to
12 years and two months in jail for corruption and money
laundering after he was convicted for unduly awarding Vantage a
contract in 2009.
    Petrobras had notified Vantage in 2015 that they had
terminated the contract, claiming Vantage breached terms.
Vantage then filed an arbitration claim against Petrobras for
"wrongful termination."
    On Wednesday, Petrobras repeated the contract was made
"through corruption."
    In July, an international arbitration tribunal ruled that
Petrobras owned $622 million to Vantage for breach of a 2009
contract.

 (Reporting by Alexandra Alper and Ana Mano; editing by Jonathan
Oatis and Susan Thomas)
 ((ana.mano@thomsonreuters.com; Tel: +55-11-5644-7704; Mob:
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