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    PGS issues update on newbuilds in Spain

    Vessel & ROV News // March 10, 2009

    Petroleum Geo-Services (PGS) and its subsidiaries Arrow Seismic Invest II Ltd and Arrow Seismic Invest III Ltd have received formal notification from Factorias Vulcano shipyard that the yard intends to deliver hull number 532 under the shipbuilding contract specified for hull number 533.

    In the notice the yard states that this is done to be able to deliver a vessel (532) under the shipbuilding contract for hull number 533 prior to the cancellation date of 29 July 2009.
    Arrow said it will now take this new information into consideration and have informed WesternGeco of the situation. Further information will be given to the market at a later stage.
    Arrow has made all contractual payments to the yard for newbuilds 532 and 533, except the final installments due on delivery (Euros 36 million per vessel, which would be matched by a similar amount by WesternGeco at the time of delivery.) 

    If a shipbuilding contract is cancelled due to late anticipated delivery by the yard, Arrow will be entitled to repayment from the yard of all installments made on the vessel, which amounts to Euros 39 million, of which Euros 32 million is secured by on-demand refund guarantees. 


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