Norwegian offshore wind service company Edda Wind has agreed with Colombo Dockyard in Sri Lanka to terminate the construction and delivery contracts for two commissioning support operation vessels (CSOVs). The terms and conditions of the cancellation have not been disclosed.
The hydrogen-ready CSOVs were scheduled for delivery under the Norwegian flag in January 2024 and July 2024.
“The adverse development in Sri Lanka, which has become detrimental to its population, as well as to the business and financial sectors, has unfortunately led to a situation whereby Colombo Dockyard is unable to fulfill the contracts,” said Kenneth Walland, CEO of Edda Wind.
The Haugesund-based Edda Wind said it had not paid any pre-delivery instalments to Colombo Dockyard, and only incurred minor cost in relation to the project, adding that under the agreement it will receive a compensation which will give a “modest positive profit and loss effect.”
Walland added that Edda Wind’s growth ambitions remain unchanged, and the company is evaluating alternatives for future fleet expansion.
Edda Wind, which is owned by Wilhelmsen and Østensjø, secured backing from John Fredriksen and Idan Ofer who committed to invest around $23m each. The company currently owns and operates two purpose-built offshore wind SOVs and has seven dedicated offshore wind vessels under construction – two offshore wind SOVs and seven offshore wind CSOVs.