Malaysia’s Yinson Holdings Bhd has received the termination of an FPSO contract for its Knock Allan FPSO located on the Olowi field offshore Gabon.
The oil and gas services company said in a press release that the contract with Canadian Natural Resources (CNR) International (Olowi) Ltd, which was inked in 2006 and was fixed for an initial 10 years from May 2009, was to have expired on April 30, 2019.
According to Yinson, the contract was terminated “on the ground of convenience.” CNR will pay an early termination fee to the Yinson subsidiary on January 31, 2019.
Yinson said CNR's obligation to make the early termination payment has been confirmed by CNR in the termination notice.
Yinson Holding’s shares were suspended at Bursa Malaysia Securities Bhd for an hour pending the announcement on October 9.
Knock Allan Pte Ltd is Yinson’s subsidiary which operates Knock Allan FPSO. The Knock Allan, converted into an FPSO by Drydocks World in Dubai, started production from the Olowi field in 2009.