BW Offshore (BWO) is to pursue a client for up to $23m after an FPSO charter was cancelled.
Earlier this month, the company said Tamarind Resources had not extended a deal for the Umuroa unit off New Zealand which ends on 31 December.
It has assessed contractual hire "which is due but not paid" by Tamarind, it said.
"The assessment has identified uncertainties related to payment of outstanding overdue hire and payment of future hire until the termination date 31 December 2019," it added.
The potential total EBITDA exposure for both past and future hire could be up to $23m by the end of 2019, BWO said.
"BWO will seek to recover all outstanding hire from Tamarind Resources and its parent company under the provisions of the existing contracts," it added.
Tamarind has been contacted for comment.
For the third quarter, BWO will book a provision of $10m due to the issue.
The unit is being redeployed.
BW said: "The Umuroa is a versatile turret-moored FPSO, making it an attractive redeployment candidate for field development."
