Nam Cheong and Perdana Petroleum settle cancellation dispute

Nam Cheong and Perdana Petroleum settle cancellation dispute

Malaysia’s Nam Cheong and compatriot company Perdana Petroleum have settled their dispute over a cancelled contract for an accommodation work barge (AWB) the offshore support vessel builder was constructing for Perdana’s subsidiary Petra Offshore.

The two parties signed a shipbuilding deal in June 2014 for two AWBs, together worth $84m, plus an option to purchase another two vessels. Petra Offshore delivered a notice of termination to Nam Cheong for the contract at the end of March.

Today, Perdana said Nam Cheong has accepted the termination notice and has forfeited the $8.4m deposit paid.

Initially, the shipyard had said the cancellation was “not valid” and that it may seek leal redress, but this option appears to have been avoided.

Holly Birkett

Holly is Splash's Online Editor and correspondent for the UK and Mediterranean. She has been a maritime journalist since 2010, and has written for and edited several trade publications. She is currently studying for membership of the Institute of Chartered Shipbrokers. In 2013, Holly won the Seahorse Club's Social Media Journalist of the Year award. She is currently based in London.

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