Marine seismic survey provider SeaBird Exploration has entered into a settlement agreement with Ordinat Shipping AS, the owners of Munin Explorer, for the termination of the charter party agreement and redelivery of the vessel.
The transaction is conditional on the fulfilment of certain preconditions and is expected to be approximately cash neutral to the company in 2018 and 2019.
SeaBird estimates that the transaction will save in excess of $2 million over the term of the contract, including the forgiveness of the $2.4 million charter hire payment due 30 June 2020. The settlement agreement provides for a three year non-competition restriction whereby the vessel cannot compete in the company’s markets.
With the termination of the Munin charter agreement, the company has completed its fleet optimization effort.