FLOATING production storage and offloading (FPSO) operator Yinson Holdings Bhd announced today that a contract secured from Aker Energy Ghana Ltd in February has been terminated due to the Covid-19 pandemic.
In a filing to Bursa Malaysia, Yinson said the contract was secured via its indirect 49% owned joint venture, Yinson Production West Africa Ltd.
“On March 31, 2020, Yinson West Africa received a notice from Aker Energy of its decision to terminate the Letter of Intent (LOI) issued for the proposed award of contracts to charter, operate and maintain the FPSO for the project at Deepwater Tano/Cape Three Points (DWT/CTP) with immediate effect,” it said.
Yinson said the termination is due to the decision by Aker Energy to postpone the activities under the DWT/CTP petroleum agreement and the development of the project until further notice amidst the Covid-19 pandemic.
The company said it will preserve its right under the LOI for compensation due arising from the termination.
The termination, however, will not have any effect on the share capital and shareholding structure of the company or material effect on earnings and net asset per share for the financial year ending Jan 31, 2021. — April 1, 2020, Bernama
