Wind Energy – Yunlin Wind Farm
Sapura Energy today announced that it has issued a termination notice to Yunneng Wind Power, in respect of a contract for the transportation and installation of monopiles at the Yunlin offshore wind farm in Taiwan.
Sapura was awarded the contract in March 2019. Sapura installed the first of the eighty monopiles at the 640 MW Yunlin wind farm in December 2020. How many monopiles have been installed since then is unknown.
As advised by external international counsels, Sapura Energy has an immediate right to legally and contractually terminate the contract.
“Negotiations with Yunneng to remedy the breach began in November last year,” said Sapura Energy Group CEO Datuk Anuar Taib. “Since we exhausted all avenues for an amicable solution, we made the tough decision to terminate the contract in the best interest of the Group.”
The project was initially expected to be completed in September 2020, but completion was delayed to September 2023 following unresolved technical and operational issues not attributable to Sapura Energy. These changes significantly altered the basis of the contract.
Following the termination notice, Sapura Energy will pursue its claims via the dispute resolution process prescribed in the contract, namely arbitration under the German Institution of Arbitration in Bremen, Germany.