“The High Court of Malaya at Kuala Lumpur has granted to TH Heavy Engineering (THHE) an order under Section 368(4) of the Companies Act 2016 for leave to enter into the proposed novation of the contract for provision of EPCIC and leasing for Layang FPSO facilities dated 27 November 2014 made between JX Nippon Oil & Gas Exploration (Malaysia) and THHE to Yinson Energy,” it said in a stock market announcement.
The original charter contract was awarded in 2014 to THHE for the engineering, procurement, construction, installation and commission (EPCIC) work for the conversion and bareboat charter of the Deep Producer 1 FPSO, to be deployed at JX Nippon’s Layang field in Block SK10, offshore Sarawak. The delivery has been delayed as THHE has struggled to fulfill its obligations due to its liquidity issues.
No financial details of the novation were disclosed. Yinson said it would make appropriate announcements on any further developments.
Meanwhile the Malaysia-based floating production storage and offloading (FPSO) vessel player separately announced that it had reached an agreement with Petrovietnam Technical Services Corporation (PTSC) in relation to the FPSO PTSC Lam Son bareboat charter that was terminated on 30 June 2017.
The charter contract signed with Lam Son Joint Operating Company (LSJOC), in 2012 was for the bareboat charter of an FPSO at the Thang Long – Dong Do, Blocks 01/97 & 02/97, or the Lam Son field, offshore Vietnam and started operating in June 2014. The contract for a firm period of seven years with the option to extend for up to three years was worth $737.3m. It was terminated on June 30, 2017 because LSJOC was liquidated.
Yinson's joint venture company, PTSC Asia Pacific (PTSC AP) has settled with PTSC and will receive a termination fee of $213.6m by January 26 , 2018.
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