Perdana Petroleum Cancels Order to Build Accommodation Work Barge

Perdana Petroleum Berhad (PPB), a Malaysian offshore marine services provider, disclosed Wednesday that the company has cancelled an order for an accommodation work barge being built by Singapore-listed Nam Cheong Ltd., citing current market conditions for its decision.

In June 2014, Perdana Petroleum had placed the orders for two 500-men accommodation work barges, identified as Vessel Hull No. SK 316 and SK 317 from Nam Cheong Limited, for $84 million.

"The Board of Directors of PPB wishes to announce that the Company has on March 28, 2016 sent notification to Nam Cheong International Ltd. of the Company’s termination/cancellation of the MOA (Memorandum of Agreement) dated June 23, 2014 on the acquisition of the accommodation work barge identified as Vessel Hull No. SK 316," it said in a filing with local stock exchange Bursa Malaysia.

"The termination is necessary as to-date there has been no potential charter contract identified for the vessel SK316. The Board is of the view that by accepting the delivery of the vessel SK316, PPB Group will have to incur additional operating costs and finance costs for servicing the loan, thereby putting unnecessary strain on the PPB Group’s balance sheet and cash flows especially if the new vessel, SK316 remains idle for a prolonged period," the company added.

Perdana Petroleum said it has written-off $9.2 million (MYR 36.1 million), which was the 20 percent deposit for the vessel SK316 in the financial year that ended Dec. 31, 2015.



Have a news tip? Share it with Rigzone!
Email news@rigzone.com

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE

More from this Author
Rigzone Staff
e-mail us at news@rigzone.com
 -  Baron Oil, SundaGas Form JV to Explore... (Sep 26)
 -  Aminex Secures Rig to Drill Ntorya-2 W... (Sep 26)
 -  Aker Solutions Lets Employees Buy Comp... (Sep 26)
 -  Lamprell Secures Services Contract wit... (Sep 26)
 -  Swire Oilfield Services Appoints New C... (Sep 26)


Most Popular Articles

From the Career Center
Jobs that may interest you
Client Representative - Third Party Inspection
Expertise: Client Representative|QA / QC / Inspection
Location: Shreveport, LA
 
Diesel Mechanic / Shop Lead
Expertise: Mechanic
Location: Pleasanton, TX
 
Internship - Construction Management
Expertise: Construction Engineer
Location: Washington, DC
 
search for more jobs

Brent Crude Oil : $47.35/BBL 3.18%
Light Crude Oil : $45.93/BBL 3.25%
Natural Gas : $2.99/MMBtu 1.01%
Updated in last 24 hours