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Petronas terminates MHS contract

Written by  AOG Staff Monday, 19 June 2017 00:07
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Kuala-Lumpur headquartered Petronas has issued a termination notice for the contract between its upstream subsidiary Petronas Carigali with MHS Aviation for the provision of rotary aircraft, equipment, and services.

MHS provides the services of five EC225 helicopters from Kertih, Terengganu, for the transportation of personnel to offshore facilities operated by Petronas in Peninsular Malaysia.

Petronas said the termination is within its contractual rights and follows the service suspension of the EC225 since April 2016 due to safety concerns arising from a fatal accident involving the same aircraft model in Norway in the same month of last year.

While the suspension of the EC225 service by the Norwegian and UK civil aviation authorities are yet to be lifted; most major oil and gas companies have ceased using the aircraft model pending assurance of its safety and airworthiness.

“The safety of its employees remains Petronas’ top-most priority. The company has had appropriate discussions and negotiations with MHS Aviation prior to reaching the decision to terminate the agreement,” the oil major said in a statement. 

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