Vantage Deepwater Company, Vantage Deepwater Drilling, Inc. v. Petrobras America Inc., Petrobras Venezuela Investments & Services, BV, Petróleo Brasileiro S.A. (Petrobras Brazil), ICDR Case No. 01-15-0004-8503 - Journal of Damages in International Arbitration, Vol.5, No.2
Vantage Deepwater Company (“Vantage Deepwater”) and Vantage Deepwater Drilling, Inc. (“Vantage Deepwater Drilling”) (jointly “Claimants”), Petrobras America Inc. (“Petrobras America”), Petrobras Venezuela Investments & Services, BV (“Petrobras Venezuela”) and Petróleo Brasileiro S.A. (“Petrobras Brazil”) (jointly “Respondents”)
Oil & Gas
Members of the Tribunal
William W. Park (President), Charles N. Brower (Claimants’ appointee), and James M. Gaitis (Respondents’ appointee)
The dispute concerned the alleged early termination of the Drilling Services Agreement (“DSA”) signed by the Parties in 2009—which had then been novated and amended several times. The DSA related to an oil drilling rig, or deep-water drilling ship, leased by Claimants to Respondents for an eight-year period. The equipment was delivered on December 2012, so the expected lease period was until December ounterclaims, mostly related to the alleged fraudulent inducement of the DSA, providing Respondents with grounds to terminate it.
In 2018, the Tribunal, by a majority decision (“Majority”), dismissed Respondents’ counterclaims with prejudice, awarding Claimants damages for the early breach of the DSA. The dissenting arbitrator argued, in essence, that Respondents had its “fundamental fairness and due process protections” denied.2