More losses for Petrofac

OIL services company Petrofac has warned that it is likely to face further losses of “a few tens of millions of dollars” from building Total’s much delayed Shetland Gas Plant.

In a trading update to shareholders to company said on Tuesday that it had now reached “a major milestone” with the completion of “all main construction activities in preparation for the introduction of gas”.

The £3.3 billion Laggan-Tormore project has cost Petrofac already an additional $400 million due to the 18 month delay in completing the project.

First gas is now expected before the end of the year.

Chief executive Ayman Asfari said: “As we close out the final commercial positions with our subcontractors and our client, there is a potential additional financial exposure of a few tens of millions of dollars over and above the amount provided in the first half of the year.

“We continue to make good progress across the rest of our portfolio of engineering, procurement and construction (EPC) projects.”

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