Mermaid cancels order for dive support vessel

Singapore

MERMAID Maritime Public Co has cancelled its order for the dive support and construction vessel Mermaid Au-sana in light of challenging conditions in the oil and gas industry, the drilling services company announced on Wednesday after the market closed.

The cancellation of the vessel, for which delivery had previously been postponed to June 30, 2017, will require Mermaid to forfeit a pre-paid US$20.4 million instalment. Mermaid has, however, received a US$1 million consideration from the builder for contract- and settlement-related expenses, and will also not be liable for the remaining US$124.8 million of the order value.