Norwegia's PGS terminates Spanish shipbuilding contract
Norwegian seismic surveyor Petroleum Geo Services ASA (PGS) (PGS.OL) said it had terminated a shipbuilding contract at Spanish yard Factorias Vulcano and said the yard was disputing its cancellation of a another deal.
"PGS strongly believes that the terminations are rightful, and will pursue its claims for refund of the installed amounts," the company said in a statement on Tuesday.
PGS said it had informed Factorias Vulcano that its subsidiary Arrow Seismic Invest III Ltd had terminated the contract for "New Build number 533", and asked for a refund of 39 million euros with interest.
PGS reiterated that it would be exposed to an impairment charge relating to the vessel of about $50 million to $60 million.
PGS also said that the yard was disputing an earlier contract termination, for "New Build number 532".
"Arrow Seismic Invest II Ltd has received a formal writ of summons from the yard, disputing Arrow's right to terminate the shipbuilding contract for New Build number 532, and claiming damages for incorrect termination," PGS said.
"PGS strongly believes that the terminations are rightful, and will pursue its claims for refund of the installed amounts," the company said in a statement on Tuesday.
PGS said it had informed Factorias Vulcano that its subsidiary Arrow Seismic Invest III Ltd had terminated the contract for "New Build number 533", and asked for a refund of 39 million euros with interest.
PGS reiterated that it would be exposed to an impairment charge relating to the vessel of about $50 million to $60 million.
PGS also said that the yard was disputing an earlier contract termination, for "New Build number 532".
"Arrow Seismic Invest II Ltd has received a formal writ of summons from the yard, disputing Arrow's right to terminate the shipbuilding contract for New Build number 532, and claiming damages for incorrect termination," PGS said.