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.