Malaysia’s Yinson Holdings has announced that it has received a termination notice for the floating production storage and offloading (FPSO) facility contract for its FPSO Knock Allen from CNR International on the ground of convenience.
The contract between Yinson and CNR International was for a fixed primary term of 10 years, commencing from May 1, 2009 and expiring on April 30, 2019. The FPSO has been operating in the Olowi field, offshore Gabon.
The termination is expected to take effect on Jan 31, 2019, at which time CNR is expected to pay an early termination fee.
Yinson believes the termination of the contract is not expected to have material adverse effect on the company’s earnings for the financial year ending Jan 31, 2019.
Yinson Holdings currently owns two FPSOs and four OSVs.
