CSOV build contracts cancelled

4C Offshore | Sue Allen
By: 29/07/2022 Oslo Bors
Edda Wind and Colombo Dockyard PLC, Sri Lanka, have entered into an agreement whereby the contracts for the construction and delivery of two Commissioning Support Operation Vessels CSOVs)are cancelled.

Edda Wind has not paid any pre-delivery instalments to Colombo Dockyard PLC, and only incurred minor cost in relation to the project. Under the agreement Edda Wind will receive a compensation which will give a modest positive P&L effect.

The terms and conditions of the cancellation agreements are to be kept confidential between the parties. “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 PLC are unable to fulfill the contracts and a cancellation agreement has been reached. However, Edda Wind’s growth ambition remains unchanged, and we are evaluating alternatives for future fleet expansion.”, says Kenneth Walland, CEO of Edda Wind ASA.”

The two 90m vessels were due to be delivered in 2024.

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