Malaysian FPSO operator Yinson Holdings has announced that its joint venture company PTSC Ca Rong Do has suffered a termination of a 10-year FPSO charter contract worth $1bn by Talisman Vietnam.
The termination of contract follows Talisman halting FPSO operations for the Ca Rong Do Field Development offshore Vietnam last year.
Yinson said the termination is due to a prolonged force majeure event, which is understood to be the ongoing territorial disputes between Vietnam and China in South China Sea.
According to Yinson, PTSC Ca Rong Do will assert its rights under all relevant contracts to claim compensation for the cost incurred for the FPSO.
Yinson Clover and PetroVietnam Technical Services Corporation (PTSC) hold 49% and 51% each in PTSC Ca Rong Do.
Repsol holds a 51.8% operating stake in the Ca Rong Do project and its partners are Mubadala Petroleum and PetroVietnam.