TAS Offshore sees another vessel deal slashed
Malaysia’s shipbuilding and ship repair services firm, TAS Offshore, has received yet another termination of a shipbuilding contract from the same client, this time for an offshore construction vessel (OCV).
TAS Offshore’s wholly-owned subsidiary, TA Ventures, received the notice of termination from QMS1 Offshore Services (QMS1).
Same thing happened back in March 2016 when TAS received contract terminations from QMS1, for two offshore support vessels.
TAS said in a Bursa Malaysia filing on Thursday that the company’s position is that the notice of termination is not valid and the company intends to proceed with legal proceedings.
The shipbuilding contract for construction of one OCV was signed in January 2015, with contract price amounting to $11.7 million.
The vessel was built by China contract builder, and the contractual delivery date was on December 11, 2015.
According to TAS, the vessel was ready for delivery within the agreed time frame but the buyer failed to provide relevant documents and certificates for further process, citing technical and quality issues.
TAS added that its recourse is to enforce its rights under the contract, and take necessary measures to protect the company’s interests.
The termination of contract is expected to have an impact on the company’s results for 2016 financial year, but the extent of the impact will depend on the outcome of the legal proceedings against QMS1.
Offshore Energy Today Staff