SCAN & ABG Shipyard Revise Newbuild Delivery Schedules

SCAN Geophysical ASA is building  three 10 streamer vessels at ABG  Shipyard in India. SCAN and its yard supervisor, V.Ships, have been working closely with the shipyard  to achieve  a  performance related  agreement  to secure more reliable production schedules and delivery dates for  the vessels. This agreement has now been entered into between SCAN and ABG Shipyard. 

According to the revised production schedules, new expected delivery dates for M/V SCAN Empress, M/V SCAN Finder and M/V SCAN Superior are December 31, 2008, July 22, 2009 and October 31, 2009, respectively. 

Based on these expected delivery dates ABG Shipyard is committed to increased liquidated damages for later  deliveries, and SCAN is committed to bonus payments for delivery on or before these dates and according to certain milestones. 

Furthermore, the average vessel cost (including bonuses) has been revised to USD 91 million per vessel including seismic equipment. 

SCAN will continue to seek agreements with various equipment suppliers in order to improve payment  terms according to the newexpected delivery dates. 

Steel cutting and production of the third vessel M/V SCAN Superior commenced according to plan on June 11, 2008.