Mosvold Supply Cancels Another AHTS Order (Singapore)

Mosvold Supply Plc, in 2007 contracted Otto Offshore Ltd, a subsidiary of Singapore’s Otto Marine Ltd, to build a series of four AHTS (VS 491 CD) vessels. Mosvold Supply Plc shortly after transferred the contracts one each to four single purpose wholly owned subsidiaries.

Mosvold Supply IV Limited (the “Company”), one of these wholly owned subsidiaries, today cancelled hull no 7050, the fourth vessel in the series.

Mosvold Supply I Limited, Mosvold Supply II Limited and Mosvold Supply III Limited, three of the other wholly owned subsidiaries of Mosvold Supply Plc., on 18th May 2010, 30th May 2011 and 25th July 2011 respectively, cancelled the first, the second and the third of the four vessels in the same series, and subsequently received full refund of instalments paid including interest by calling on the refund guarantees from the guaranteeing bank, Otto Marine Ltd. having failed to make repayment on demand. The Company is according to the shipbuilding contract entitled to a refund of instalments paid including interest, and has today made a demand thereon to Otto Offshore Ltd.

Background

Mosvold Supply Plc was incorporated in Cyprus on 14 th June 2007 under the name Virenia Navigation Company Limited, and changed its name to Mosvold Supply Plc by special resolution on 6 th August 2007.

On 19 th June 2007 the Company entered into two turn key shipbuilding contracts with Otto Offshore Ltd. for the building of two VS 491 AHTS CD, ultra large, Anchor Handling Tug Supply Vessels at Batamec Shipyard Ptl., in Batam, Indonesia. The vessels were scheduled for delivery in October 2009 and June 2010 respectively. The turn key contract price for these vessels was USD 77.35 million per vessel.   The Company was awarded two options for a further two vessels of the same design for delivery in December 2010 and July 2011 respectively. These options were exercised on 3th September 2007 at a turn key contract price of USD 33.0 million and EURO 36.357 million for Hull No 7049 and USD 33.8 million and EURO 37.239 million for Hull No 7050.

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Offshore Energy Today Staff, February 28, 2012; Image: Otto