TH Heavy Engineering given another year to deliver Layang FPSO
Project still at risk of further delays mainly due to a lack of access to financing, say sources
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MALAYSIA'S pilgrim fund-sponsored TH Heavy Engineering (THHE) is understood to have been granted one more year to deliver the anchor production facility for JX Nippon-operated Layang field development, but uncertainty continues to plague the Malaysian entity's capability to meet the new deadline, with a much needed cash injection to restructure its finances looking set to be derailed.
THHE was awarded a US$372 million contract in May 2014 by JX Nippon for the delivery of a floating production, storage and offloading (FPSO) vessel towards the Layang oil and gas field development. Delivery of the vessel, which has already been rescheduled to mid-2016 from early 2016, according to an analyst report, is said to have been postponed with the consent of JX Nippon, by another 12 months.
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