April 26, 2005
Houston-based FMC Technologies, an engineering firm contracted by the Algerian oil company Sonatrach for the installation of an offshore oil-loading infrastructure, says the cost of the project has risen by $18 million. The added cost represents some $0.16 per diluted share to apply to the 1Q05 period.
The company identified the extended testing and installation of the offshore pipelines as the sources of the increase, compounded by "delays caused in part by bad weather conditions, and in part by sealing issues discovered during the final testing of pipeline connections." The company also says "additional costs were also incurred due to engineering design changes at three onshore pump stations. Lastly, project engineering and project management costs have increased as a result of these additional onshore and offshore requirements."
The offshore oil loading project contract was awarded to FMC in 2002 and is slatted to be delivered in the third quarter of 2005.
© The North Africa Journal 2005
