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: Offshore Energy Vessels Industry News Activity China Malaysia

Related Stories

MODEC Wins ExxonMobil Guyana’s Hammerhead FPSO Contract

Sapura Energy Nets $22.6M in Offshore Support Vessel Contracts

Eneos Scoops Jack-Up Drilling Contract Offshore Vietnam

MODEC Gets Shell’s Gato do Mato FPSO Ops and Maintenance Job

Marine Masters Secures Wellhead Platforms Installation Job Off India

Sapura Energy Nets $720M from Multiple Drilling Services Contracts

Shell Predicts 60% Rise in LNG Demand by 2040 with Asia Leading the Way

Initial Drilling Results Raise Questions on South Korea’s Offshore Gas Viability

Japan's Mitsui Eyes Alaska LNG Project

AIRCAT 35 Crewliner Vessels Delivered to Service TotalEnergies Angola

Current News

Chuditch Gas Field Up for Summer Drilling Ops as Sunda Reshapes Ownership Structure

EnQuest Bags Two Production Sharing Contracts off Indonesia

Hanwha Drilling’s Tidal Action Drillship En Route to Petrobras’ Roncador Field

China's ENN, Zhenhua Oil Ink LNG Supply Deals with ADNOC

MODEC Wins ExxonMobil Guyana’s Hammerhead FPSO Contract

India Stretches Bids Deadline for 13 Offshore Deep-Sea Mineral Blocks

Indonesia Awards Oil and Gas Blocks to Boost Reserves

Sapura Energy Nets $22.6M in Offshore Support Vessel Contracts

CNOOC Puts Into Production New Oil Field in South China Sea

Sunda Energy Starts Environmental Consultation for Chuditch-2 Well Drilling Plans

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