Exmar readies to dispute YPF’s force majeure notice

Belgium shipping company Exmar is considering the best way to defend its interests in a dispute with Argentina’s YPF, Kallanish Energy reports.

The company said last week it received notification of force majeure from YPF under the Charter Agreement and Services Agreement they hold for the Tango FLNG barge.

Exmar said the move is “unlawful,” and would be considering its best option to defend itself. However, it said that regardless of the outcome of the dispute, it was also looking into “several measures to safeguard its liquidity position.”

YPF claims that the effects of the coronavirus pandemic both globally and locally, have hindered its ability to perform its obligations under the agreements with Exmar.

This includes, but isn’t limited to, YPF’s ability to pay the invoices due for services performed for the period starting the second half of March 2020, Exmar said in a statement.

The Tango FLNG barge, located in Bahia Blanca, has the capacity to process 0.5 million tonnes per annum of liquefied natural gas. The floating facility, chartered for 10 years, enabled the country to export its first Vaca Muerta LNG cargo in November 2019.

YPF hasn’t commented on the matter.

This post appeared first on Kallanish Energy News.