Technical and quality issues of vesselsbacome a matter of contention

Shipbuilder TAS Offshore Bhd is mulling legal recourse against QMS1 Offshore Services Ltd for the termination of the contracts in the construction of two units of anchor handling tug oil and recovery supply vessels.

Under the shipbuilding contracts between TAS’ wholly-owned subsidiary TA Ventures (L) Ltd and OMS1 Offshore Services, the contract price for each of the vessels was US$13.5mil.

Both the proposed new vessels were built by a contract shipyard in China.

“The contractual delivery dates were on Dec 27, 2015 and Feb 26, 2016.

“The two vessels,with class certificate issued, were ready for delivery within the agreed time frame but the buyer refused to take delivery of the vessels, citing technical and quality issues which we strongly disagree,” TAS said in reply to queries from Bursa Malaysia.

TA Ventures received the purported notice of termination on March 2.

TAS said it would enforce its rights under the contract and would take necessary measures to protect the company’s interest.

It said the purported termination was not expected to have a major operational impact on the group.

TAS, which owns and operates a shipbuilding and repair yard in Sibu, has in recent years, outsourced the construction of offshore supply vessels to a contract shipyard in China.
Source: The Star