MUR » Topics » REDELIVERY OF FPSO

This excerpt taken from the MUR 10-K filed Mar 16, 2005.

REDELIVERY OF FPSO

 

25.1 Redelivery. The FPSO shall, as soon as practical (and in any event within ninety (90) Days) following the expiration or termination of this Charter (unless terminated by reason of the occurrence of total loss or a constructive total loss, requisition or as otherwise provided in Article 20 or Article 21), or unless otherwise instructed by Charterer, be demobilized by Owner. Subject to Clause 25.2 hereof, on termination of this Charter for any reason whatsoever, unless the Option shall have been exercised as contemplated in Article 15 hereof, Owner hereby agrees to accept redelivery of the FPSO on an “AS-IS, WHERE-IS, WITH ALL FAULTS” BASIS, WITHOUT ANY WARRANTIES, WHETHER EXPRESS OR IMPLIED, IN REGARD TO ITS CONDITION OR OPERABILITY.

 

25.2 Demobilization Costs. On termination of this Charter, unless it is a cancellation under Clause 3.5, or a termination by Charterer pursuant to Clause 17.3 or Clause 18.3(ii)(a) (for reasons in either Clause 18.3(i)(a) or Clause 18.3(i)(c)), Article 20 or Article 21, Charterer shall (subject to the provisions of Clause 17.2 (concerning Clause 17.1(i) terminations)) reimburse Owner for the costs of safely disconnecting the FPSO from the Riser Facilities and pay to Owner the Demobilization Costs as set forth in Appendix B, Part A.

 

25.3 Crude Oil and Processed Oil. Any residual Crude Oil or Processed Oil not offloaded by Charterer at the end of the Term or Extended Term shall be retained on board by Owner and Owner shall, at Charterer’s cost, remove the Crude Oil and Processed Oil and store same safely for Charterer at an accessible storage location nearby the FPSO location.

 

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25.4 Charterer Supplied Items. In the event of termination as contemplated in Clauses 17.1, 17.3, 17.4, 18.3, 26.3 and 35.2,

Charterer may, in its sole discretion, either: (i) transfer to Owner, for 

        all of the right, title and interest which

Charterer may enjoy in and to the Charterer Supplied Items (WHICH OWNER SHALL ACCEPT ON AN “AS-IS, WHERE-IS” BASIS, WITHOUT ANY WARRANTIES, WHETHER EXPRESS OR IMPLIED, IN REGARD TO THEIR CONDITION OR OPERABILITY); or (ii) require Owner (and Owner hereby agrees, upon written request from Charterer) to transport the FPSO from the FPSO Site to an onshore base designated by Charterer and disconnect and remove such Charterer Supplied Items from the FPSO. The costs under option (ii) above shall be reimbursed by Charterer to Owner and shall include but shall not be limited to (a) all lifting expenses and reasonable costs, without mark-up, of delivering such Charterer Supplied Items to Charterer, (b) all transportation costs necessary in order to deliver such Charterer Supplied Items to a nearby onshore base in Malaysia or Singapore designated by Charterer, and (c) loss of hire by Owner which shall be compensated by Charterer paying the Hire Rate from the time the FPSO departs the FPSO Site and for each Day thereafter until the Charterer Supplied Items have been delivered to Charterer, provided, that Owner shall use its Best Efforts to timely complete such works to minimize the liability of Charterer. Notwithstanding the foregoing, the Charterer shall owe no compensation to Owner under sub-clause (c) above in the event this Charter is terminated pursuant to Clauses 17.3, 18.3(i)(a) or 18.3(ii)(a) for reasons described in Clause 18.3(i)(a).

 

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