- Paragon Offshore (PGN +3%) is higher despite indicating in its latest fleet status report that Petrobras (PBR -0.9%) is attempting to cancel two contracts covering long-term leases of deepwater drillships.
- According to PGN’s report, both contracts are set to last well into 2017 and both drillships are now eligible for a 15% performance bonus; the total backlog loss for PGN could exceed $400M if PBR walks away.
- Earlier this month, PBR walked out of a binding contract with Vantage Drilling, terminating a long-term contract for an offshore deepwater drillship.