Petroleum Geo-Services provides further update rearding the vessels under construction at the Factorias Vulcano shipyard in Spain.

Petroleum Geo-Services, and its subsidiary Arrow Seismic Invest II Ltd. (Arrow), having informed WesternGeco that there was a right to cancel the shipbuilding contract for New Build number 532 have received a formal notification by WesternGeco that the company on that basis has canceled the charter party and all other related agreements for New Build number 532.

As a consequence, Arrow has formally notified the yard that it cancels the contract for New Build 532, and has called upon the refund of EUR 39 million with the addition of interest, as set out in the shipbuilding contract.

As previously communicated, the cancellation of vessel 532 is expected to result in an impairment charge of up to USD 50 million, recorded in the first quarter results.

Tags: Petroleum Geo-Services ASA