Swire Pacific Offshore Cancels Four PSVs at EISA

Singapore-based shipowner and operator Swire Pacific Offshore Operations (Pte) Ltd (SPO) said it has cancelled shipbuilding contracts for four Platform Supply Vessels (PSVs) with Brazilian shipyard Estaleiro Ilha S.A. (EISA). 

The update follows a period of negotiations requested by the shipbuilder following the Notice of Cancellation delivered by SPO in August 2014.

According to Swire, EISA was unable to meet the minimum and critical conditions to continue with the construction of the vessels.

“SPO’s Board has concluded that they can no longer have confidence in the delivery of these vessels on a reasonable timescale and to SPO’s satisfaction, and therefore must reaffirm the cancellation of these shipbuilding contracts,” the company said.

The vessels were ordered in May 2011 as part of the company’s plans to develop its business in Brazil. The first vessel was due for delivery in January 2014 with the remaining vessels at approximately three month intervals thereafter.

“This is the first time that SPO has cancelled a vessel order and I hope it is very clear that the decision was not taken lightly. We remain committed to the Brazilian market as it is still an important part of our long term plans,” Managing Director of Swire Pacific Offshore, Mr. Neil Glenn said.

The company added that its vessel building contracts in other countries are proceeding as planned. The company recently took delivery of the anchor handling tug supply vessel (AHTS), Pacific Centurion and platform supply vessel (PSV), Pacific Goldfinch.

SPO will take delivery of five more PSVs in 2015 and four more PSVs across 2016 and 2017.