Extraordinary losses of JPY13.0 billion (US$115.2 million) have led to Japan's Kawasaki Heavy Industries (KHI) terminating its shipbuilding contract for the tophole drilling/light well intervention (LWI) vessel Island Navigator.
Island Offshore Management said the yard had run into difficulties during the engineering process and had also been hit with higher material costs since the contract was signed.
Managing Director Håvard Ulstein said the uncertainty of the offshore development sector and financial restructuring of the Island Offshore Group had also contributed to the decision to terminate the contract signed in November 2013.
KHI directors decided the company would declare extraordinary losses in the consolidated settlement of accounts for the third quarter of the fiscal year ending March 31, 2018.
The Island Navigator was designed by Rolls-Royce to perform a series of complicated subsea and well operations.
The 169-metre vessel, which was classified as ICE-IB class, was scheduled for delivery in 2018/2019.
