The termination will become effective on 30 September and Petronas has agreed to reimburse all outstanding capital and operational expenditures to the contractors by June 2017.
As part of the arrangement, the ownership of the Berantai floating production, storage and offloading vessel will transfer to Petronas.
“The RSC’s cessation will allow Petronas to minimise the project’s long-term value erosion and optimise the development and production activities in Malaysia, in line with its efforts to reduce costs and increase the efficiency of its operations,” Petronas said in a statement on Monday.
The
