KUALA LUMPUR (March 27): Yinson Holdings Bhd's scheduled work on an FPSO facility for the Ca Rong Do Field Development — Block 07/03 (CRD), located offshore Vietnam, has been temporarily halted due to a force majeure event.

In a Bursa filing today, the group said its joint venture company PTSC Ca Rong Do Ltd had received a notice dated March 25 from PetroVietnam Technical Services Corporation (PTSC) under the Bareboat Charter Contract on the matter.

Yinson’s wholly-owned unit Yinson Clover Ltd had been awarded a floating production, storage and offloading (FPSO) charter contract worth US$1 billion (RM4.4 billion) on April 26, 2017. 

It subsequently formed a joint venture company with PTSC called PTSC Ca Rong Do Ltd, each holding 49% and 51% respectively. 

“In the notice, PTSC informed that on March 24, 2018, PTSC has been notified by Talisman Vietnam 07/03 BV of a force majeure event under the contract where TLV has been directed not to carry out the scheduled work program for the CRD Project for the time being,” the filing said.

Talisman Vietnam 07/03 BV, a subsidiary of Repsol SA, is the operator of the field. 

“Pursuant to the notice, PTSC with the support of PTSC CRD has sought clarification from TLV on the nature of the alleged force majeure event, including particulars of how TLV’s performance of its obligations under the contract has been affected, and the action intended to be taken by TLV to remedy the situation as provided for under the provisions of the Contract. 

“Pending resolution of this matter, and in compliance with the notice, PTSC CRD will endeavour to take all reasonable actions to mitigate the effects of the force majeure event,” the group said. 

Yinson added that PTSC CRD will continue to monitor the situation closely and will assert its rights under all relevant contracts and in laws, for any claims, liabilities, losses and damages against or suffered by it in any way, concerning this matter. 

Meanwhile in a separate filing, the group said its other associate firm PTSC Asia Pacific Pte Ltd had been awarded an interim contract with PTSC to charter FPSO PTSC Lam Son for the petroleum operations within the Lam Son Field, with effect from July 1, 2017. 

The group said the interim contract was made pursuant to an interim contracted dated March 28 made between PTSC and PetroVietnam Exploration Production Corporation (PVEP), pending the appointment of the latter as the official operator of the Lam Son Field.

The group had earlier halted trading from 9am to 10am this morning, with regards to the announcement.  

On resuming trade, it rose nine sen or 2.44% to RM3.78, for a market capitalisation of RM4.02 billion.