US court orders Petrobras to pay $70mn to IESA in procurement dispute
- The court ruled that around $37 million plus interest must be paid by its wholly owned subsidiary Petrobras Netherlands BV (PNBV).
- Petrobras had already provisioned for the PNBV-related settlement in its third quarter 2020 financial results.
BRASILIA: A New York-based arbitration court has ruled that subsidiaries of Brazil's state-run oil firm Petrobras must pay around $70 million plus interest to engineering and construction services firm IESA Oleo e Gas SA.
In a securities filing on Monday, Petroleo Brasileiro SA , as the state oil firm is formally known, said the court ruled that around $37 million plus interest must be paid by its wholly owned subsidiary Petrobras Netherlands BV (PNBV), and $33 million by PNBV's subsidiary Tupi BV.
Petrobras had already provisioned for the PNBV-related settlement in its third quarter 2020 financial results, and the Tupi-related settlement will appear in its fourth quarter results, the filing said.
The confidential arbitration process was related to an Engineering Procurement and Construction (EPC) contract for an offshore processing and storage facility (FPSO), according to the filing.
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