News / 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.”
Become a supporter of Shetland News
Shetland News is asking its many readers to consider start paying for their dose of the latest local news delivered straight to their PC, tablet or mobile phone.
Journalism comes at a price and because that price is not being paid in today’s rapidly changing media world, most publishers - national and local - struggle financially despite very healthy audience figures.
Most online publishers have started charging for access to their websites, others have chosen a different route. Shetland News currently has over 600 supporters who are all making small voluntary financial contributions. All funds go towards covering our cost and improving the service further.
Your contribution will ensure Shetland News can: -
- Bring you the headlines as they happen;
- Stay editorially independent;
- Give a voice to the community;
- Grow site traffic further;
- Research and publish more in-depth news, including more Shetland Lives features.
If you appreciate what we do and feel strongly about impartial local journalism, then please become a supporter of Shetland News by either making a single payment or monthly subscription.
Support us from as little as £3 per month – it only takes a minute to sign up. Thank you.