Seismic newbuilding cancelled

Petroleum Geo-Services ASA and its subsidiary Arrow Seismic Invest II Ltd. have exercised their right to cancel a high-capacity seismic newbuilding under construction at the Factorias Vulcano shipyard in Spain. Hull number 532 was to have been chartered to WesternGeco but this company has cancelled the charter party and all other related agreements for the newbuilding. As a consequence, Arrow will be seeking a refund from the shipbuilder of EUR 39 million with the addition of interest, as set out in the shipbuilding contract.