Energy major Chevron has cancelled a $1.9bn contract with South Korea’s Hyundai Hyundai Heavy Industries (HHI) for the construction of an FPSO for its UK Rosebank oil and gas project.
“Chevron North Sea Limited can confirm that the agreement with Hyundai Heavy Industries to provide the Rosebank Floating Production, Storage and Offloading (FPSO) vessel has been terminated with immediate effect,” the company said in a statement.
HHI secured the contract for the the FPSO in April 2013 and Chevron decided to postpone the project in November 2013 to work with partners to improve the project economics.
According to a spokesperson at HHI, the process to build the offshore plant has not begun due to delays in Chevron’s final investment decision, and so the shipyard won’t suffer any losses from the order cancelation.
