Shipowner and operator, Swire Pacific Offshore Operations (Pte) Ltd (SPO) has reaffirmed the cancellation of shipbuilding contracts for four vessels with Estaleiro Ilha S.A (EISA), the company said in its press release.
This update follows a period of negotiations requested by EISA following the Notice of Cancellation delivered by SPO in August 2014. Regrettably, on SPO’s specific project, EISA was unable to meet the minimum and critical conditions to continue with the construction of the vessels despite SPO’s repeated and good faith efforts to find a satisfactory way forward. SPO’s Board has concluded that they can no longer have confidence in the delivery of these vessels on a reasonable timescale and to SPO’s satisfaction, and therefore must reaffirm the cancellation of these shipbuilding contracts.
SPO’s vessel building contracts in other countries are proceeding as planned. The company recently took delivery of the anchor handling tug supply vessel (AHTS), Pacific Centurion and platform supply vessel (PSV), Pacific Goldfinch. SPO will take delivery of five more PSVs in 2015 and four more PSVs across 2016 and 2017.