Aker Energy has decided to terminate its letter of intent (LOI) with Yinson Holdings Berhad (YHB) to award a charter and operations and maintenance contract for a floating, production, storage and offloading (FPSO) vessel for the Pecan project offshore Ghana, YHB reported Tuesday.
Aker and YHB had entered into the LOI on Feb. 20, 2020.
In a written statement, YHB noted the LOI termination – effective immediately – stems from Aker’s decision to postpone the offshore Ghana project development until further notice given the COVID-19 pandemic.
As Rigzone reported shortly after the LOI was announced, the FPSO would have been deployed at the Aker-operated Pecan field in the Deepwater Tano Cape Three Points (DWT/CTP) block approximately 71 miles (115 kilometers) off Ghana’s coast. The field development had called for using the FPSO as a hub for processing and exporting crude at a plateau production rate of roughly 110,000 barrels per day.
Aker’s partners in the Pecan development include Lukoil, Ghana National Petroleum Corp. and Fueltrade Ltd.
YHB stated Tuesday that it “preserves its right under the LOI for compensation due arising from the termination.”
To contact the author, email mveazey@rigzone.com.
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