Oil and gas firm Petrofac has terminated a contract to build a deepwater multi-purpose offshore vessel at China’s Shanghai Zhenhua Heavy Industries (ZPMC).

Petrofac said it has issues with ZPMC’s performance relating to the construction of the proprietary design Petrofac JSD6000 deepwater multi-purpose offshore vessel.

Ayman Asfari, group chief executive, said: “It is regrettable that it has become necessary for us to take this decision, and the board is now reviewing its options.”

Under the contract signed in January 2014, the newbuilding vessel was scheduled to be delivered in 2017.