SCAN Vessel Construction Delayed at ABG Shipyard

SCAN Geophysical is building three 10 streamer vessels at the ABG Shipyard in India. Based on the existing work force engaged on the vessel, SCAN and its yard supervisor V-Ships estimate that the first vessel, M/V SCAN Empress, will be delayed by approximately three months implying delivery at the end of September 2008.

For the second vessel M/V SCAN Finder, there has been limited progress since the steel cutting commenced in August 2007. The yard has planned to construct this hull in new and more efficient production facilities next to the existing yard, in order to catch up on previous delays. However, SCAN has been informed that the yard has suffered from delays of necessary permits from local authorities related to use of the new yard facilities, and the construction of the vessel is assumed to be delayed accordingly. The construction work of the third vessel M/V SCAN Superior, has not yet been started for the same reason.

The yard has not informed SCAN of new delivery dates, and hence these assumed delays are not confirmed by the yard. Further information will be provided to the market when updated production schedules are received from ABG Shipyard.

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