Marine Link
Saturday, July 21, 2018

Shipyard Contract Cancelled

Maritime Activity Reports, Inc.

December 26, 2017

Illustration of UT 777. (Copyright Rolls-Royce Marine AS)

Illustration of UT 777. (Copyright Rolls-Royce Marine AS)

Ongoing uncertainty in the global offshore energy sector has claimed another casualty, as Kawasaki Heavy Industries announced that it has terminated -- in agreement with Island Navigator I KS -- the shipbuilding contract for the top hole drilling/light well intervention vessel, Island Navigator.

A number of factors were cited in the decision to cease the construction, including difficulties in the engineering process and increased material costs since the signing of the contract, and ultimately uncertainty surrounding the volatile offshore energy market and the ongoing financial restructuring of the Island Offshore Group.

“The Island Navigator would have been a fantastic vessel. Going forward we choose to develop our existing Light Well Intervention vessels which still is the leading and most modern vessels within its niche,” said Håvard Ulstein, Managing Director of Island Offshore Management AS, in a relase. The termination will not have any negative economical consequence for Island Offshore. Provided that the banks which finance the project consent, the termination will be implemented in January 2018.
Maritime Reporter Magazine Cover Jul 2018 - Marine Communications Edition

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

Subscribe
Maritime Reporter E-News subscription

Maritime Reporter E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

Subscribe for Maritime Reporter E-News