Otto Offshore, a unit of Otto Marine, says it has decided to terminate a shipbuilding contract after the deal was prematurely cancelled by purchaser GC Reiber Shipping ASA through joint venture company Polar Marine 1.

Polar Marine 1 which was set up to operate and manage vessels for charter is 49% owned by Otto Ventures and 51% is owned by GC Reiber.

The terminated contract is worth 23.5 million euros ($47.9 million) and Otto Offshore says it has received milestone payments and a deposit amounting to Euro 4.7 million.