Offshore Activity


MAY 31, 2017

Sete Brasil has been in judicial disputes between shareholders for some time as a result of the Lava Jato’s revelations, the drop in the price of oil, and the cutback in Petrobrás investments, but now the dispute has advanced a notch. The investors of the company have filed a request for international arbitration and request reimbursement of R $ 4.475 billion for losses so far.

Previ, Banco do Brasil, Funcef, Caixa, and Vale’s pension funds are among those who signed the request, but the list with all names has not yet been disclosed. Still, it is very likely that the partner banks of Sete Brasil will also be part of the process, since the investments in the company were large in recent years, with no return so far.

In addition to the three pension funds mentioned above, the banks Bradesco, BTG Pactual and Santander, the US group EIG and the Strong, Lakeshore, Luce Venture and FI-FGTS funds, as well as Petrobras’ 5% participation.

Sete Brasil was created in 2010 and contracted by Petrobras to build 28 FPSO’s for the pre-salt, in addition to a 29th without a previous contract, but the evolution of the last years led the company to a monumental accumulation of debts, causing it to ask Judicial Recovery in April last year, when debts totaled R $ 19.3 billion.

After Lava Jato’s investigations, Petrobras reduced its investment plan and decided to cancel a series of FPSO contracts, but the two companies did not reach agreement on the number of units that would be made. The plan foresees a reduction of the portfolio for 12 vessels to be completed, after contributions of another US $ 5 billion, but so far has not been approved. A new meeting will be held on June 26 in search of some consensus.

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