Vantage Drilling wins $622 million in arbitration against Petrobras

(Reuters) - Brazil’s state-controlled oil company Petrobras has been fined $622 million by an international tribunal for breaching a 2009 contract with a unit of Vantage Drilling, the U.S.-based rig contactor said on Monday.

The tribunal found that Petrobras and its units, Petrobras America Inc (PAI) and Petrobras Venezuela Investments and Services (PVIS) breached a drilllship contract with Vantage Deepwater Co.

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, following which Vantage had filed an arbitration claim against PAI, PVIS and Petrobras for “wrongful termination.”

Petrobras was not immediately available for comment.

Reporting by Anirban Paul in Bengaluru; Editing by Maju Samuel