Oslo-listed Dolphin Geophysical has said today that it has received a notice of time charter termination from Sanco Shipping for the two seismic vessels Sanco Swift and Sanco Sword.
Dolphin said it is “evaluating the validity and effect of the notice in respect to the present difficult market situation” in a statement today.
Dolphin signed a five year charter with Sanco for Sanco Swift in 2011, with the vessel coming into service mid-2013. Dolphin had acquired a streamer package to be installed on the vessel at a cost of $55m. Sanco Sword was also chartered for 5 years, with contracts signed in 2012 and the vessel delivered in 2014.
While no reason for the termination of charter was given, an industry source commented to Splash that Dolphin “are obviously in charter default.” The company recorded a net loss of $15m in its second quarter results.