KHI terminates contract for Island Offshore vesselYard News // January 2, 2018
In agreement with Island Navigator 1 KS, Kawasaki Heavy Industries (KHI) has decided to terminate a contract for the top hole drilling/light well intervention vessel, Island Navigator.
The yard stated that is has been facing difficulties in its engineering process as well as increases in material costs since the contract was signed.
The companies said they had a common understanding that the environment in the offshore oil and gas industry is, and will be, unpredictable. They also noted the ongoing financial restructuring of Island Offshore Group, and have reached a mutual agreement to terminate the contract for the vessel.
Termination will not have any negative economic consequences for Island Offshore.
Provided that the banks which financed the project provide their consent, termination will be implemented in January 2018.