Malaysia’s Nam Cheong has terminated a charter deal for one of its offshore support vessels with an offshore wind farm contractor in Japan after the charterer failed to meet its obligations.
The Singapore-listed company said the contract collapsed following the cancellation of the charterer’s downstream agreement with its end-user, leaving it unable to perform under the original charter. Nam Cheong issued a formal notice of termination this week.
Although the contract never reached operational deployment, the charterer remains liable for certain contractual payments, and Nam Cheong said it is reserving its rights to pursue recovery of outstanding sums.
The offshore marine group described the development as “unfortunate” but stressed it is exploring redeployment and fresh chartering opportunities for the vessel to mitigate any financial impact.
The charter termination relates to contracts worth $47.5m for three OSVs secured in June, including an anchor handler and two fast crew suppliers. Two vessels will work for Marine Operations for Environmental Services (SAIL) in the Middle East, while one was originally tied to the Japanese offshore wind deal.
