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AsiaElec RENEWABLES AsiaElec

Sapura Energy issues termination

notice to Yunneng Wind Power

MALAYSIA MALAYSIA’S Sapura Energy has issued a ter- the contract in the best interest of the Group.”
mination notice to Yunneng Wind Power for a Sapura Energy said it would pursue its claims
contract for the transportation and installation using the dispute resolution process prescribed
of monopiles at the Yunlin offshore wind farm in the contract, namely arbitration under the
in Taiwan. German Institution of Arbitration in Bremen.
The row centres on an alleged breach of con- “As advised by external international counsels,
tract after delays in the work involved, which has Sapura Energy has an immediate right to legally
been pushed back from 2020 to 2023. and contractually terminate the contract,”
Sapura Energy’s subsidiary Sapura Offshore Sapura Energy noted.
was awarded the contract in March 2019. Sapura Sapura Energy installed the first monopile at
Energy said the project was initially expected to the Yunlin project in October 2020. In August
be completed in September 2020, but this was 2021, Yunneng Wind Power said foundation
delayed to September 2023 because of unre- installations for the Yunlin Offshore Wind Farm
solved technical and operational issues not were “scheduled to be finalised in year 2021,”
attributable to Sapura Energy, which “signifi- and that the Yunlin Offshore Wind Farm was
cantly altered the basis of the contract”. expected to be fully installed and commissioned
“Negotiations with Yunneng to remedy by the first quarter of 2022. The wind farm,
the breach began in November last year,” said located about eight kilometres off the west coast
Sapura Energy Group CEO Anuar Taib. “Since of Taiwan at Yunlin County, is expected to have
we exhausted all avenues for an amicable solu- a total capacity of up to 640MW.%.
tion, we made the tough decision to terminate

P10 www. NEWSBASE .com Week 07 16•February•2022