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Mermaid Maritime terminates construction contract for dive support vessel

Benjamin Cher Published on Thu, Dec 08, 2016 / 7:58 AM GMT+8

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SINGAPORE (Dec 8): Mermaid Maritime has entered into a mutual agreement with China Merchants Industry Holdings to terminate their construction contract for a dive support and construction vessel in light of the challenging oil and gas market.

Under the terms of the settlement, China Merchants will retain the US$24.4 million pre-paid instalment, as well as the vessel and the materials and equipment forming the vessel.

Mermaid Maritime will no longer be obligated to pay the balance US$124.8 million. The group has recorded asset impairment for the pre-paid sum and associated costs related to the vessel in 2015 financial statements.