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From Reuters

Brazil’s state-run oil producer Petrobras ended a drill ship contract with rig contractor Ensco Plc because of corruption allegations, Ensco said, as fallout from the country’s largest-ever graft investigation spreads. Ensco received a notice from Petrobras on Monday saying the oil company believed the contract was void, Ensco said in a U.S. Securities and Exchange Commission filing dated Jan. 5.

Petroleo Brasileiro SA, as Petrobras is formally known, chartered the DS-5 drill ship in 2008, when it was owned by Pride International, a company Ensco bought in 2011.

The Petrobras notice said Pride had knowledge the rig’s shipbuilder made “improper payments” to a marketing consultant who then shared the money with former employees of Petrobras, Ensco said.

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