SHI, Nexus Defer Delivery of Nexus 2 FPSO

Samsung Heavy Industries (SHI) and Nexus Floating Production (Nexus) have agreed to defer the Nexus #2 project for additional 18 months due to the adverse developments in the financial markets. The agreement includes terms by which the project may be restarted at any point during the deferral period, when a firm employment commitment and funding are in place.

The agreement also gives Nexus an option to terminate the Nexus#2 contract with an exposure limited to US $67 million, which has already been paid under the contract.

"This agreement is of great value to the company, as it eliminates the need for additional funding in the near- to mid-term. SHI and Nexus continue its good co-operation, which is underlined by this arrangement. The agreement allows the company to focus on securing an attractive charter for its first unit and also creates a well timed market opportunity for its second unit," said CEO Anders Holm.