Offshore drilling services firm Mermaid Maritime has cancelled an order for a dive support and construction vessel in light of “challenging” oil market conditions.
Thailand-based Mermaid will lose the pre-payment of $20.4million it made to China Merchants Industry Holdings.
But the firm said contract termination had been mutually agreed between both parties and that it would not have to pay the $124.8million that would have been due upon delivery of the Mermaid Ausana.
Mermaid also said it had recovered $1million as compensation for termination and release.
The vessel had been due for delivery in June 2017.
The termination means the ship belongs to China Merchants, which can find another buyer for it.
In a separate announcement, Mermaid said four of its dormant subsidiaries are being voluntarily liquidated.