Petronas terminates deal with MHS

KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) is terminating the contract between its upstream subsidiary Petronas Carigali Sdn Bhd and MHS Aviation Bhd for the provision of rotary aircraft, equipment and services.

In a statement, Petronas said MHS provided the services of five EC225 helicopters from Kertih, Terengganu, for the transportation of personnel to offshore facilities operated by Petronas Carigali in Peninsular Malaysia.

“The termination is within Petronas Carigali’s contractual rights, follows the service suspension of the EC225 since April last year due to safety concerns arising from a fatal accident involving the same aircraft model in Norway in the same month of last year,” said the company in a statement.

The suspension of the EC225 service by Norwegian and

United Kingdom civil aviation authorities had yet to be lifted, it added.

“Most major oil and gas companies have also ceased using the aircraft model pending assurance of its safety and airworthiness. The safety of employees remains Petronas Carigali’s top-most priority,” said Petronas.

The company had held appropriate discussions and negotiations with MHS Aviation prior to reaching the decision to terminate the agreement, it added.

The safety of employees remains Petronas Carigali’s top-most priority.