Petrobras has terminated a contract for Subsea 7’s Seven Mar pipelay support vessel (PLSV), which was working offshore Brazil, according to a news release.

Subsea 7 said the contract was due to expire at the end of 2016. The termination was effective May 31.

As a result the group backlog has diminished by about $47 million, Subsea 7 said in a news release.

Brazilian maritime law prioritizes Brazilian-flagged vessels over international vessels of a similar specification, according to Subsea 7. As a consequence, the operating license for Seven Mar has expired, which resulted in the early termination of the contract.