Yongnam's (SGX:AXB) subsidiary, Yongnam Engineering and Construction, entered into a novation agreement with Aztech Steel and Sinohydro Corporation, according to a filing with the Singapore Exchange on Friday.

The deal entails Aztec becoming the replacement sub-contractor that will be responsible for all obligations and liabilities under the contract. Meanwhile, Sinohydro will release Yongnam Engineering from all obligations, duties and liabilities.

The company had initially entered into a sub-contract with Sinohydro on Sept. 26, 2014.