Friday, September 21, 2012

Petrobras (PBR) Lawyers To Help Transocean (NYSE:RIG) - Chevron (NYSE:CVX)

Drilling contractor Transocean is taking the help of Petroleo Brasileiro Petrobras SA (ADR)(NYSE:PBR) lawyers in overturning a ruling that bars it from undertaking work in Brazil.

The Chief Executive of Petrobras, Maria das Gracas Foster, told reporters that his company's fortunes were closely to those of Transocean.

If Transocean was barred from work in Brazil then Petrobras would also have to stop its oil exploration and development of its deep water oil fields.

The ban has been imposed following an oil spill in November in a field operated by Chevron Corp Chevron Corporation(NYSE:CVX). The ban encompasses both Transocean and Petrobras.

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Transocean has about seven rigs working for Petrobras in Brazil.

Foster said Lawyers were looking at ways to help overturn the ban and executives have prepared plans to deal with the disruption caused by a loss of the rigs.

"We don't even want to think about what would happen if the ban took effect," Foster said after delivering closing remarks at the Rio Oil & Gas conference. "The impact would be very bad."

There are civil lawsuits against the company seeking $20 billion worth of damages from the two companies from the two companies.

However according to a Reuters report, the injunction on Transocean is yet to be served. 

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