Norwegian seismic player Petroleum Geo-Services said today it has terminated its contract for the Newbuild 535 seismic vessel with Spain’s Factorias Vulcano shipyard due to delays in delivery.
Aleya Begum 22 September 2010 12:56 GMT
The cancellation is the third of four newbuild vessels that PGS, through its subsidiary Arrow Seismic Invest, had on order with the yard to be scrapped.
“The vessel had an adjusted delivery date of January 2010,” said PGS spokesman Tore Langballe.
“It is still far from complete.”
After a 200-day delay period from stated delivery date, PGS has a right to cancel the order said LangBalle.
The cancellation includes a call for a refund of €40.5 million ($54.3 million) with interest from the yard.
Refund claims by PGS on the previous two cancelled vessels, Newbuild 532 and Newbuild 533, reached arbitration before being settled.
“We believe it (payment of refunds) will be pretty straight forward this time,” said Langballe.
“The full amount is guaranteed by banks.”
The termination will also see PGS hit with an $80 million material impairment charge which it expects to record in the third quarter.
This is an extract from http://www.upstreamonline.com/live/article230174.ece
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