Mermaid Maritime cancels rig pair at China Merchants

Mermaid Maritime cancels rig pair at China Merchants

Thailand’s Mermaid Maritime Public Company has cancelled construction contracts with China Merchants Industry Holdings for a pair of tender assist drilling rigs.

Mermaid has cancelled the contracts with China Merchants by mutual consent, forfeiting pre-paid installments totalling $44m. The rigs were ordered in 2014 at a price of $149m each, along with a $145m DP2 dive support vessel which was cancelled last month.

Mermaid had already recorded an asset impairment on the entire pre-paid amount and associated costs in its 2015 accounts.

As part of the termination deal, Mermaid has right of first refusal to purchase the rigs should China Merchants identify another buyer. Mermaid would be offered the same price, terms and conditions as the prospective buyer.

Grant Rowles

Grant spent nine years at Informa Group based in London, Sydney, Hong Kong and Singapore. He gained strong management experience in publishing, conferences and awards schemes in the shipping and legal areas, working on a number of titles including Lloyd's List. In 2009 Grant joined Seatrade responsible for the commercial development of Seatrade’s Asia products. In 2012, with Sam Chambers, he co-founded Asia Shipping Media.

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