Mermaid’s subsidiary Mermaid Offshore Services had booked the newbuild DP1 dive support and construction vessel, Mermaid Ausana, with CMIH back in January 2014.
“In light of the challenging global oil and gas market situation and the cooperative relationship between the company and the builder (CMIH), the parties have mutually entered into a settlement agreement to terminate the construction contract for the vessel effective 6 December 2016,” Mermaid announced.
CMIH will retain a sum of $20.4m already paid by Mermaid, out of a total contract price of $145.2m.
In return, Mermaid has also received from CMIH a sum of $1m for expenses incurred by Mermaid in relation to the construction contract and the settlement.
“In a move to mitigate financial exposure, the company had already recorded an asset impairment on the entire pre-paid sum and associated costs related to the vessel in its 2015 financial statements,” Mermaid said.
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