Sapura Energy terminates offshore wind farm contract in Taiwan

Malaysian offshore contractor Sapura Energy has issued a termination notice to Yunneng Wind Power in respect of a contract for the transportation and installation of monopiles at the Yunlin offshore wind farm in Taiwan.

The group’s wholly owned subsidiary, Sapura Offshore, was awarded the contract in March 2019. The project was initially expected to be completed in September 2020, but completion was delayed to September 2023 following unresolved technical and operational issues not attributable to Sapura Energy. “These changes significantly altered the basis of the contract,” Sapura said.

“Negotiations with Yunneng to remedy the breach began in November last year,” said Sapura Energy Group CEO Datuk Anuar Taib. “Since we exhausted all avenues for an amicable solution, we made the tough decision to terminate the contract in the best interest of the group.”

Following the termination notice, Sapura Energy said it would pursue its claims via the dispute resolution process prescribed in the contract, namely arbitration under the German Institution of Arbitration in Bremen, Germany.