KUALA LUMPUR (Oct 9): Yinson Holdings Bhd said today its indirect wholly-owned subsidiary Knock Allan Pte Ltd had yesterday received a termination notice for a floating production storage and offloading (FPSO) facility contract from CNR International (Olowi) Ltd "on the ground of convenience".

Today, Yinson told Bursa Malaysia that CNR and Knock Allan had on Nov 30, 2006 entered into the contract, which involves provision and operation of an FPSO for the Olowi field development. Yinson said the 10-year contract, which started from May 1, 2009, will expire on April 30, 2019.

Today, Yinson said the contract termination "entails payment of an early termination payment by CNR".

Yinson said CNR's obligation to make the early termination payment has been confirmed by CNR in the termination notice.

"It is further provided in the notice of termination that the early termination payment will be paid by CNR to Knock Allan on Jan 31, 2019 in accordance with, and subject to, the terms of the contract. The termination of the contract is not expected to have material adverse effect on the company's earnings, net assets per share and gearing for the financial year ending Jan 31, 2019.

"The company will make appropriate announcement(s) to Bursa Malaysia Securities Bhd in relation to any material developments concerning the aforesaid termination," Yinson said.

In a separate statement, Yinson said trading of its securities was halted between 9am and 10am today. Yesterday, Yinson shares closed at RM4.83.