Credit woes have compelled shipyard Samsung Heavy Industries and Norway-based Nexus Floating Production to agree to delay a second vessel project for one-and-a-half years.

The new-build ship Nexus No. 2 will not be restarted until “a firm employment commitment and funding are in place”.

Nexus, with bases in Norway and Singapore, has already paid $67 million into the floating production storage and offloading vessel, or FPSO, yet the agreement gives the company an option to cut its losses.

“This agreement is of great value to the company, as it eliminates the need for additional funding in the near- to mid-term,” a Nexus statement said Monday.

The agreement allows the company to focus on securing an attractive charter for its production ship. Nexus had ordered two FPSO`s from Samsung Heavy Industries in Korea and two corresponding submerged turret production systems from Advanced Production and Loading.

Wild times are predicted for floating producers and their stock has been volatile although productive with often huge gains. Some observers foresee a wave of mergers in the Norwegian-dominated segment.

Tags: APL, Nexus Floating Production, Samsung Heavy Industries