Aker Energy has terminated a job with Yinson Holdings for the provision of a floating production storage and offloading (FPSO) vessel for the Pecan development project offshore Ghana after a letter of intent for the project was issued in February.
According to Yinson, the termination is due to the decision made by Aker Energy to postpone the development of the project until further notice amidst the coronavirus pandemic.
The primary terms of the contract was for 10 years, with an option for Aker Energy to extend it by one year for up to five times, for a maximum 15-year term.
Yinson said it would preserve its right under the letter of intent for compensation arising from the termination.
As the coronavirus continues to spread, multiple offshore explorers have announced plans to suspend ongoing offshore projects and cut expenditure.