Transocean served with Brazil drilling injunction

Braden Reddall – Reuters, 09/27/2012

Transocean Ltd (RIG.N) said on Thursday it was served with a preliminary injunction by a federal court in Brazil that would require the drilling contractor’s nine rigs operating in waters off the country to cease operations in 30 days.

The ban stems from an oil spill last November in an offshore field operated by Chevron Corp (CVX.N) at a well drilled with a Transocean rig. The eight other Transocean rigs in Brazil work for Petrobras (PETR4.SA), including seven contracted to the state-led oil company and another subcontracted from BP (BP.L).

If not overturned, the ban could seriously disrupt exploration and drilling in one of the world’s most promising offshore oil frontiers by removing about 13 percent of Brazil’s drilling fleet.

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