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Seacrest Petroleo, an independent oil and gas producer in Brazil, has filed an arbitration request against Petrobras, the state-owned oil giant, over the failure to repair critical subsea pipelines. The pipelines, vital for oil production at the Cricaré and Norte Capixaba Clusters, were supposed to be fixed by Petrobras as part of a sale agreement. However, after 20 months, Petrobras has not completed the repairs, which has caused significant financial losses for Seacrest.

On December 27, 2024, a Rio de Janeiro court issued an injunction halting any action from Petrobras regarding a $71 million payment due from Seacrest's subsidiaries, SPE Cricaré and SPE Norte Capixaba, on December 31, 2024. Seacrest Petroleo claims that Petrobras' inaction has resulted in $71.2 million in damages due to the inability to transport heavy oil through the pipelines as intended, forcing the company to sell its production at a substantial discount.

The company initiated arbitration proceedings with the International Court of Arbitration (ICC), seeking indemnification for the damages caused by Petrobras' non-compliance with the repair agreement. Seacrest's claim includes losses in revenue, profitability, and reputation as a result of the off-spec oil sold at discounted prices.

Petrobras’ failure to meet its obligations under the sale agreement for the Norte Capixaba Cluster has severely impacted Seacrest's operations, and the company is requesting the suspension of the $71 million payment due to Petrobras in January 2025.

Editor: Kemal Can Kayar