RIO DE JANEIRO – An oil service company is suspending operations on five drills it operates for Brazil's state-run oil giant Petrobras amid a widespread corruption scandal that has engulfed both companies.
In a statement Tuesday, Petrobras said Schahin has announced the impending suspension of the five rented drills. The statement says that "Petrobras is evaluating the appropriate contractual measures."
Schahin is among the companies caught up in the corruption investigation at Petrobras, which prosecutors say is the biggest corruption scheme yet uncovered in Brazil. Construction and engineering firms are alleged to have made kickbacks to Petrobras executives and politicians in exchange for winning contracts at inflated prices.
Schahin has been banned from bidding for future Petrobras contracts. The deep-sea drill provider declined to comment.