Thai offshore services provider scraps subsea vessel order

Mermaid Maritime, an offshore services provider, has canceled the delivery of a subsea vessel it ordered in China back in 2014.

In a statement on Wednesday, Mermaid said its subsidiary Mermaid Offshore Services had terminated the construction contract by mutual consent with the China Merchants Industry, the vessel builder.

The company had earlier agreed to postpone the delivery of the DP2 dive support and construction vessel Mermaid Ausana vessel until 2017, citing tough times in the industry.

However, it seems Mermaid now expects the situation to remain tough for longer than initially thought.

The company said on Wednesday: “In light of the challenging global oil and gas market situation and the co-operative relationship between company and the builder, the parties have mutually entered into a settlement agreement to terminate the construction contract for the cessel effective December 6, 2016.”

While China Merchants Industry will retain the pre-paid installment of $20.4 million, paid earlier by Mermaid, the Thai offshore services provider has freed itself of needing to pay $124.8 million in case of the final vessel delivery.

“In a move to mitigate financial exposure, the company had already recorded an asset impairment on the entire Pre-Paid Sum and associated costs related to the vessel in its 2015 Financial Statements,” Mermaid said.

Also, as part of the deal, Mermaid has received $1 million from the vessel builder, for expenses incurred in relation to the construction contract and the settlement.

Offshore Energy Today staff

 

Share this article

Follow Offshore Energy Today

Events>

<< Jan 2017 >>
MTWTFSS
26 27 28 29 30 31 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31 1 2 3 4 5

CERAWeek 2017

CERAWeek by IHS Markit is the premier annual international gathering of energy industry leaders, experts, government officials…

read more >

Annual Offshore Support Journal Conference, Awards & Exhibition 2017

The 2017 event will see the industry transitioning to a new phase, with new preoccupations, challenges and opportunities. The offshore…

read more >

FPSO Europe Congress 2017

The FPSO Europe Congress is the European edition of the world’s largest FPSO conference and exhibition and will gather senior stakeholders…

read more >

AOG 2017

The Forum will begin directly after the SUT Subsea Controls DownUnder Conference, drawing a wider audience for our suppliers.This event…

read more >

Jobs>

Assistant Driller

Maersk Drilling Norge AS was established in 1990 and employs a staff of approximately 1000 people.

apply

Electrician

For one of our clients we are looking for a Ships Electrician. Our client is a company with worldwide activities. You will work in a rotation of 4 till 6 weeks on and off.

apply

QC Coordinator Offshore

Do you attach great importance to quality and do you have an affinity with offshore projects? Then read about what Van Oord can offer you.

apply