Sea Production receives breach notice from Sinopec

HAMILTON, BERMUDA: Puffin FPSO Ltd, a subsidiary of Sea Production Ltd. and owner of the Front Puffin FPSO [floating production, storage and offloading] facility, and contracting entity on the FPSO Charter Contract dated March 3, 2006 with AED Services Ltd, has received a Notice of Material Breach from the operator of the Puffin Field purporting to act on behalf of Puffin FPSO Ltd's contracting client, AED Services Ltd.

Sinopec operates the Puffin field after Australia's AED Oil completed the sale of 60 percent interest in the assets held under the AC/P22, AC/L6 and AC/RL1 permits to Sinopec. AED still holds the remaining 40 percent interest. "The company and Puffin FPSO Ltd take issue with, and will be vigorously defending, the allegations of breach of material obligations made in the Notice of Material Breach as provided for in the Contract," Sea Production said in a statement.In the meantime, and upon the request of the operator of the Puffin Field, production operations have been suspended on the Front Puffin FPSO.

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