PGS cancels contracts with Factorias Vulcano

Petroleum Geo-Services (PGS), Norway, has informed Factorias Vulcano, Spain, that its subsidiary, Arrow Seismic Invest III, has exercised its right to terminate the shipbuilding contract for newbuild number 533.

PGS has called for a US$55.5 million refund as well as US$45 million in interest.

PGS earlier announced that its other subsidiary, Arrow Seismic Invest II, had terminated the shipbuilding contract for newbuild number 532 and that the shipyard has disputed the termination.

Arrow Seismic Invest II has received a formal writ of summons from the yard, disputing Arrow's right to terminate the shipbuilding contract. PGS said it would pursue its claims for the refund of the installed amounts.