Teekay Offshore Partners is reviewing its legal options after Brazil’s Petrobras cancelled the charter for the flotel vessel Arendal Spirit.
The vessel was one of several flotel units that Petrobras had been using to carry out maintenance services for production units in the Campos and Santos basins.
In the company’s first quarter 2017 results, president Kenneth Hvid said: “With respect to the Arendal Spirit UMS, Teekay Offshore had recently been notified by the charterer, Petrobras, of its termination of the charter contract on this unit.
“Teekay Offshore is disputing the termination and reviewing its legal options, while at the same time actively marketing the unit for alternative employment.”
The unit was contracted through to 2018, but feel foul of the strict take on breaches of contract that Petrobras has been taking as it seeks to cut costs.
Teekay posted a net profit of $18.89million in the first quarter.