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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