TAS Offshore Sees Another Vessel Deal Axed
Malaysia’s shipbuilding and ship repair services firm, TAS Offshore, has received yet another termination of a shipbuilding contract from the same client, this time for an offshore construction vessel (OCV).
TAS Offshore’s wholly-owned subsidiary, TA Ventures, received the notice of termination from QMS1 Offshore Services (QMS1).
In a filing with Bursa Malaysia, the shipbuilder said the latest contract, valued at US$11.7mil (RM45.8mil), was for the construction of an offshore construction vessel with the delivery date being Dec 11, 2015.
“The vessel was ready for delivery within the agreed time frame but the buyer failed to provide relevant documents and certificates for further process, citing technical and quality issues, which we strongly disagree with,” said TAS.
TAS said that the company’s position is that the notice of termination is not valid and the company intends to proceed with legal proceedings.
Last month TAS announced QMS1 had sent a notice of termination for contracts relating to the construction of two anchor handling tug oil recovery supply vessels for US$13.5mil (RM52.9mil) each.
TAS Offshore said the termination of the contract is expected to impact its financial year 2016 (FY16) results but the extent of the impact cannot be ascertained at the moment, pending the outcome of the legal proceedings against QMS1.