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Petrofac Terminates Contract With ZPMC Over Vessel Construction Issues

Fri, 09th Oct 2015 06:26

LONDON (Alliance News) - Petrofac Ltd on Friday said it has terminated the contract with ZPMC, the company that was constructing its Petrofac JSD 6000 deepwater multi-purpose offshore vessel.

The FTSE 250-listed oil and gas company said it had terminated its contract with ZPMC over "issues with ZPMC's performance in respect of the construction" of the vessel.

"It is regrettable that it has become necessary for us to take this decision, and the board is now reviewing its options," said Chief Executive Ayman Asfari.

The contract was awarded to ZPMC back in 2014, and the vessel was expected to be constructed and installed sometime in early 2017. Petrofac did not state what effect the contract termination will have on the vessel's schedule.

According to Petrofac's website, ZPMC was awarded a contract concerning the vessel's construction. ZPMC, or Shanghai Zhenhua Heavy Industry Co Ltd, is a heavy-duty equipment manufacturer listed on the Shanghai stock exchange.

By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance