Hornbeck looks to complete construction of two cancelled MPSVs

US OSV operator Hornbeck Offshore is looking to resume construction works for two MPSVs it cancelled earlier this year at local yard Eastern Shipbuilding.

Hornbeck terminated the contract for the final two MPSVs ordered as part of the company’s 24-vessel domestic newbuild program due to performance issues at the yard, having previously reached an agreement with the shipyard in 2016 to postpone delivery to the first and second quarters of this year.

According to Hornbeck Offshore, it continues to work with the issuer of the shipyard’s performance bonds in order to complete construction of the vessels at a completion yard. The vessels are now expected to delivered in the second and third quarters of 2019, respectively. However, delivery dates may be further extended if the company is unable to reach an agreement on completion of these vessels promptly.

The remaining shipyard contract price to be paid by the company as of the date of termination for both vessels was approximately $53.7m, and the company expects to incur an additional $8.1m of budgeted project costs post-delivery for final outfitting of the vessels.

Hornbeck Offshore owns 66 OSVs and eight MPSVs, with 40 OSVs and one MPSV currently stacked.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.
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