Malaysia’s THHE and Yinson’s previously agreed Layang FPSO contract novation from THHE to Yinson has hit a stumbling block.
Namely, the two companies have informed that the Court of Appeal January 10, 2018, allowed an application by Globalmariner Offshore Services Sdn. Bhd. (“GMOS”) to stay THHE’s validation application of the novation pending GMOS appeal.
Globalmariner Offshore Services, which was in 2014 awarded a contract to provide manpower and expertise in support of the Layang field FPSO, is to be heard by February 2018.
“The Court of Appeal has also fixed the appeal for further case management on 30 January 2018 to amongst others, fix a hearing date for the appeal. Briefly, the appeal was filed subsequent to the High Court’s dismissal of GMOS’ application to amongst others, intervene in the High Court proceedings on 21 December 2017,” THHE said.
Back in November 2017, TH Heavy Engineering Berhad, which is building the FPSO, applied to a Malaysian court to allow it novate the contract and deliver the vessel to Yinson.
Yinson has confirmed this in the Bursa Malaysia filing on Wednesday, saying it had no objection to the THHE application.
The original charter contract is for the engineering, procurement, construction, installation and commission and leasing of an FPSO to be deployed at the Layang field in Block SK10, offshore Miri, Sarawak and is to be novated by THHE to Yinson.
As previously reported, THHE’s Layang FPSO delivery delay has been caused by the company’s liquidity issues.
The engineering and construction company was in June 2014 awarded a contract for the conversion and delivery of the Deep Producer 1 FPSO, to be used for oil production from JX Nippon’s Layang field.