11th Jul 2016 06:30
LONDON (Alliance News) - Petrofac Ltd on Monday said an agreement has been reached between its partners to end the Berantai risk service contract in Malaysia.
The contract was awarded to Petrofac and its two local partners by Malaysian oil and gas firm Petronas back in 2011 and, since then, the London-listed oilfield services company has co-invested in the development of the Berantai field and has been responsible for its operation and maintenance.
Petrofac and its partners, Kencana Energy Sdn Bhd and Sapura Energy Ventures Sdn Bhd, have now reached a mutual agreement with Petronas to end the contract from the effective date of Spetember 30, 2016.
Petrofac gave no reason for the decision in its announcement Monday.
Petronas, which had the option to end the contract earlier than the planned end date in 2020, will reimburse the balance outstanding capital and operational expenditure to Petrofac and its partners over the period to June 2017.
Petrofac said the receivable due under the contract at the end of 2015 was USD357.0 million. However, Petrofac said it will "incur a small impairment charge" as a result of the contract ending.
The ownership of the floating production, storage and offloading vessel (FPSO) being used for the project will be transferred to Petronas.
By Joshua Warner; [email protected]; @JoshAlliance
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