ABG faces seismic cancellation

Indian shipbuilder ABG Shipyard could see the cancellation for an order of three seismic vessels from Norwegian owner Scan Geophysical which recently stated that it was unable to sign a sale and leaseback deal for the three vessels. Pacific First Shipping (PFS), Singapore, had previously signed a letter of intent with Scan Geophysical for the sale and leaseback agreement.

“The Norwegian company has failed to get into the sale and leaseback deal but it may get into such a deal with Pacific First Shipping in coming times,” Dhanajay Datar, Chief Financial Officer at ABG was quoted as saying. Datar insisted that the $211 million shipping contract was still intact.