Chevron has cancelled a contract worth $1.9bn for a floating production storage offloading (FPSO) with South Korea-based Hyundai Heavy Industries (HHI).

The vessel was destined for Chevron’s Rosebank project in the UK North Sea.

Rosebank oil and gas field is located 175km north0west of the Shetland Islands in water depths of 3,600ft.

HHI won the contract in April 2013 to build the FPSO for Chevron North Sea.

The company was responsible for engineering, procurement, and construction for the facility to be deployed in the Rosebank field.

"It will be able to produce 100,000 barrels of oil and 190 million standard cubic feet of natural gas a day."

The 99,750t turret moored FPSO was scheduled for handover by the end of last month under the agreement.

Measuring 292m in length, 57m in width, and 30m in depth, it will be able to produce 100,000 barrels of oil and 190 million standard cubic feet of natural gas per day and have storage capacity for 1.05 million barrels of oil.

The Rosebank project entered the front-end engineering and design phase in 2012.

Rosebank development will include a FPSO vessel; production and water injection wells; subsea facilities, and a gas export pipeline.

HHI awarded a subcontract for the FPSO turret facilities to Bluewater Energy Services last year.

The Rosebank project is operated by Chevron North Sea with 40% interest. Other partners are OMV (50%) and DONG E&P (10%).