TAS Terminates Shipbuilding Deals for 16 Offshore Vessels

OE Staff
Friday, July 24, 2020

Malaysian offshore vessel operator TAS Offshore has canceled shipbuilding contracts for 16 offshore support vessels.

The company had signed the contracts in the 2013-2015 period with two Chinese shipbuilders Guangzhou Hangtong Shipbuilding and Shipping Co. Ltd. (“HangTong”) and Jiangmen Hangtong Shipbuilding Co.

The contracts were for 16 offshore support vessels with values ranging from $10.38 million to $39.38 million per vessel.

The vessels had initially been slated for delivery between 2014 to 2017, but the subsequent oil rout and a drop in demand for offshore vessels led to agreements to defer the deliveries and suspend the shipbuilding works.

With another oil crisis currently underway, and the COVID-10 pandemic, the parties have now mutually agreed to terminate all the contracts, and TAS will not be refunded for any installments paid so far.

TAS Iffgsire said that that the reason for termination was the low oil price, which has led in a decrease in demand of the offshore support vessels and adversely affected the sale of this type of vessel.

The company, established in 2008, said it expected losses from the termination agreement to be RM70 million ($16,4 million).

Categories: Malaysia Offshore Energy Vessels Industry News Activity China

Related Stories

Petrovietnam, Partners Sign PSC for Block Off Vietnam

Woodside and Jera Agree LNG Cargoes Supply for Japan’s Winter Period

Japanese Oil and Gas Firm Enters Two Blocks off Malaysia

Woodside Agrees Long-Term LNG Supply with Petronas Unit

Chuditch Gas Field Drilling Ops Get Delayed to Next Year

CNOOC Starts Production at Offshore Field in South China Sea

Keyfield Ventures into Indonesia’s Oil and Gas Market with New Partner

ABS Greenlights SHI’s Multi-Purpose Deepwater LNG Floating Unit

MODEC Wins ExxonMobil Guyana’s Hammerhead FPSO Contract

Sapura Energy Nets $22.6M in Offshore Support Vessel Contracts

Current News

Centrica and Thailand’s PTT Ink Long-Term LNG Supply Deal

Petrovietnam, Partners Sign PSC for Block Off Vietnam

Japan Protests China’s New Oil and Gas Construction Activities in East China Sea

CNOOC Signs Hydrocarbons Exploration and Production Deal with Kazakhstan

Thailand's PTT to Buy LNG from Glenfarne's Alaska LNG Project

Woodside and Jera Agree LNG Cargoes Supply for Japan’s Winter Period

Petronas Expands Suriname Portfolio with Deepwater Block Acquisition

Japanese Oil and Gas Firm Enters Two Blocks off Malaysia

Yinson Production, “K” LINE Target Europe's CCS with FSIU and LCO2 Solutions

Woodside Agrees Long-Term LNG Supply with Petronas Unit

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com