Shenzhen-listed shipbuilder and trader Sainty Marine has revealed that Norway’s Boa Offshore could demand a USD84 million refund on two long-delayed platform supply vessels (PSVs).
In a filing to the stock exchange on 17 July, the shipbuilder acknowledged that Boa Offshore was likely to claim the newbuildings had not been delivered by the cut-off date at which the owner can abandon the deal.
The vessels are being built at Nantong Mingde Heavy Industry (NMHI) and were due for delivery on 26 May and 25 September 2014 respectively, according to an arbitration award on 16 July.
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The owner could now cancel the newbuilding contract and demand refunds amounting to USD84 million against payments made and related interest.
According to IHS Sea-Web.com, the two PSVs are identical to vessels Boa Offshore ordered at NMHI in 2007 but later abandoned.
In early 2013 the newbuilding contract with Sainty Marine and NMHI was renewed on the basis that Sainty Marine would buy the vessels from NMHI and deliver them to Boa Offshore.
In December 2014 Boa Offshore filed for arbitration over the contract as Sainty Marine could not meet the delivery schedule.