Mermaid Maritime and China Merchants Industry Holdings have mutually agreed to cancel the construction contract for the construction of tender assist drilling rigs to be named ‘MTR-3’ and ‘MTR-4’ respectively.
All pre-paid installments and associated costs were already recorded as asset-impairments in Mermaid’s 2015 Financial Statements. No further payments are due to the Builder.
The contract price for each of the Rigs (which is inclusive of rig equipment spares) was USD 149 Million). This is equivalent to USD 298 Million for both Rigs.
The Owners had made a pre-paid installment of US$ 44 Million for both Rigs pursuant to the Construction Contracts. The balance of the contract price which would have been due and payable to the Builder upon delivery of both Rigs pursuant to the Construction Contracts is US$ 254 Million.