An illustration of the Rosebank FPSO provided by Chevron.
South Korean shipbuilder Hyunday Heavy Industries confirmed Wednesday that Chevron has cancelled a $1.8 billion (2.1 trillion won) order for a floating production storage offloading (FPSO) destined for Chevron’s Rosebank project in the UK North Sea.
“As the process to build the offshore plant has not begun due to delays in Chevron’s final investment decisions, the company won’t suffer any losses from the order cancelation,” an HHI spokesman told Yonhap News.
The FPSO would have been permanently moored at the Chevron-operated oil and gas field, located about 80 miles northwest of the Shetland Islands in water depths of approximately 3,600 feet.
Hyundai Heavy Industries should have had some indication the contract termination was coming Chevron in late 2015 determined that proven reserves at the Rosebank field had not been recognized. This past August, Hyundai Heavy Industries settled a dispute with drilling contractor Fred Olsen over the termination of the its contract for a new build semi-submersible drilling rig that would have drilled at the Rosebank field.
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Exxon Mobil Corp. and Chevron Corp. posted stronger-than-expected earnings for the first quarter as higher oil and natural gas prices outweighed production outages from the Iran war.
The U.S. issued a waiver on Wednesday broadly authorizing U.S. companies to do business with Venezuela's state-run oil company PDVSA, a key step that could secure investment and, in thelonger-term, increase the country's crude production capacity.
U.S. expanded licenses for Venezuelan oil exports are expected to restore PDVSA production to pre-blockade levels of 1.2M bpd by mid-2026. Vitol and Trafigura join Chevron in clearing storage backlogs.
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