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    HeavyLift Ancora delayed yet again - late delivery goes to arbitration

    Vessel & ROV News // March 3, 2008

    Songa Ancora Pte Ltd, the seller of the heavy lift vessel Ancora (to be renamed HeavyLift Ancora), has informed Ocean HeavyLift (OHL) that there will be another delay in the delivery of the vessel.

    The remaining work is reported to be one week of conversion and approximately 10 days of testing/trials.

    OHL has accepted that the cancellation date under the Memorandum of Agreement between the companies has been extended and that a reduction in price by US$60,000/day continues until final delivery date.
     
    Furthermore, Songa Ancora Pte Ltd, has notified OHL that, in their view, a significant part of the delay in the delivery of Ancora is due to force majeure, and has on that basis claimed a significant reduction of the penalty payments.

    Songa Ancora Pte Ltd has claimed that the number of penalty days should be reduced by 111. The claim is related to two occasions of adverse weather conditions (11 days) and the remaining days are for conditions at the shipyard claimed to be outside the seller's control. The full value of this claim is US$6.66 million.

    In addition, Songa Ancora Pte Ltd has indicated that they will make a similar claim for reduced penalty payments in relation to the delivery of HeavyLift Hawk.

    Based on legal advice from two independent law firms, OHL considers that there is no basis for a reduction of the penalty payments and has consequently rejected the claim from Songa Ancora Pte Ltd in full.

    The dispute is expected to be settled by arbitration in Oslo, Norway. The dispute will not influence on the delivery of the vessels.

     

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