SeaMetric cancels heavy lift vessels

Norway’s SeaMetric has cancelled the orders for two heavy transport vessels in China because construction of the vessels has suffered significant delays.

SeaMetric has been building the two vessels at the China Petroleum Liaohe Equipment Company (CPLEC) shipyard since September 2007. The shipyard’s ultimate owner is the state-owned China National Petroleum Corp (CNPC).

SeaMetric says it has made total claims of $288.4m, covering refunds and compensation, from the main contractor ESSCA and the CPLEC shipyard. “The delays affect negatively both SeaMetric’s business development efforts and the possibilities for attracting further financing for the project,” it said.

The contractual delivery date for the vessels was originally 31 August 2009 and SeaMetric has unsuccessfully tried to find an agreed arrangement with the ESSCA and the CPLEC shipyard to get the project back on track. “It can be established beyond reasonable doubt that delivery will be delayed by more than 180 days, which entitles SeaMetric to cancel the contracts,” it said.

SeaMetric said it will now undertake a bid process for fresh construction work from “experienced and competent yards” in China. It said a major Chinese bank has expressed willingness to assist SeaMetric in solving its financing requirements for such a construction program and that a number of different combinations of yards and financing structures are “currently being investigated”.

SeaMetric’s Twin Marine Lifter (TML) system is intended for the installation and removal of platform topsides and jackets weighing over 20,000t.