Reliance Industries has not exercised its option to purchase Ocean Yield’s FPSO Dhirubhai-1 and the unit has now ceased production from the MA field located off the East Coast of India.
Reliance had the option to buy the FPSO once the FPSO’s ten-year charter contract on the MA field expires. The contract expired on Wednesday, September 19, 2018 and, since Reliance has not exercised the purchase option, the FPSO has now ceased production on the field.
The FPSO Dhirubhai-1 is owned by Ocean Yield’s subsidiary Aker Floating Production (AFP).
Ocean Yield said on Wednesday that, as a result, Ocean Yield will consider recording an impairment related to the FPSO in 3Q 2018 between $0-50 million.