SINGAPORE — Marco Polo Marine subsidiary Bina Marine and Hallin Marine Subsea International have canceled a SGD 74.5 million (US$49.4 million) shipbuilding contract for SOV Coniston, a DP2 subsea operations vessel.
The vessel, originally scheduled to be delivered in the fourth quarter of 2010, would have been Hallin’s third subsea operations vessel.
The contract, signed in late 2008, was discontinued on mutual consent as Bina Marine was unable to fulfill certain pre-completion conditions to the contract, including necessary repayment guarantees.
Bina Marine and Hallin Marine are reviewing their options in light of current economic uncertainty, and are considering re-negotiating the contract if the conditions can be met.
Construction activities for the vessel had not yet begun, so there will be no material financial impact to Marco Polo Marine or its subsidiaries.