The Seven Mar vessel. Image courtesy of Subsea 7.

Subsea 7 confirmed on Wednesday that a vessel contract with Petrobras has been terminated early.

Subsea said that the day-rate contract for its Pipelay Support Vessel, Seven Mar, working for Petrobras in offshore Brazil was terminated effective as of May 31.

The contract was due to expire at the end of 2016.

As a result of the early termination, Subsea 7 said that its backlog has declined by about $47 million.

As of the first quarter of 2016, Subsea 7 had a backlog of $6.45 billion.

Brazilian maritime law prioritizes 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,” Subeas 7 said.


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