| Boa Offshore terminates two shipbuilding contracts |
| Boa Offshore group subsidiary Boa PSV AS has cancelled shipbuilding contracts for two multipurpose PSVs with Nantong Mingde Heavy Industry. The Norwegian company has scrapped the orders after going to arbitration over the ships' delayed delivery. “The cancellation notice further claims repayment of all advance payments including interest according to the contracts,” said Boa in a statement. “Refund guarantees from the yard's banks are in place and will be called upon if the yard does not pay within 30 business days.” Boa Offshore added that related loan facilities with China Development Bank Corporation have also been terminated and will be repaid with funds already in escrow. Boa Offshore had earlier announced an arbitration award from a London tribunal after a hearing held in the end of June 2015. “The award determines the delivery dates in the two shipbuilding contracts with Nantong Mingde Heavy Industry and the company sees this as an important step towards a cancellation," said Boa Offshore on 15 July, when the court presented its ruling. Boa Offshore group is an offshore services vessel operator with a fleet of 42 ships. Its business encompasses subsea, barges, tugs, seismic/AHTS, engineering and project management. The fleet is modern with an average age of six years. |