BW Offshore: Papa Terra project update
(Thomson Reuters ONE) -
The EPC conversion project P-63 (Papa Terra) is under construction at the COSCO
Dalian yard in China. As a consequence of increased work scope compared with
initial plans, the departure of the unit has been delayed. A thorough review of
the consequences of the extended yard stay and additional scope has resulted in
a revision of the forecasted cost for completing the project. The second quarter
will as a result be negatively impacted by USD 50 million. BW Offshore will
release the second quarter results 2012 on 30th August 2012 as previously
announced.
The additional project costs are mainly linked to increased steel replacement,
completion of the boiler systems, increased engineering and commissioning cost
and increased yard costs associated with the delayed schedule. All possible
efforts are being made by BW Offshore and its Brazilian partner to meet the
overall project schedule requirements from Petrobras.
The Papa Terra project is accounted for as a fixed-price construction contract
where revenue is recognised in accordance with the "Percentage of Completion"
(POC) accounting method. BW Offshore is receiving milestone payments from the
client Petrobras throughout the project period.
For further information, please contact:
Knut R. Sæthre, CFO, +47 9111 7876 (Media)
Kristian Flaten, Vice President IR and Corporate Finance, +47 9509 2322
(Investors/analysts)
About BW Offshore:
BW Offshore is a leading global provider of floating production services to the
oil and gas industry. BW Offshore is the world's second largest contractor with
a fleet of 14 FPSOs and 2 FSOs represented in all major oil regions world-wide.
BW Offshore has an excellent track record on project execution and operations,
as well as a robust balance sheet and strong financial capabilities. In more
than 30 years of production, BW Offshore has executed 38 FPSO and FSO projects.
The company is listed on the Oslo Stock Exchange. Further information is also
available on www.bwoffshore.com
This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: BW Offshore via Thomson Reuters ONE
[HUG#1627834]
Unternehmensinformation / Kurzprofil:
Datum: 19.07.2012 - 08:00 Uhr
Sprache: Deutsch
News-ID 166768
Anzahl Zeichen: 2946
contact information:
Town:
Oslo
Kategorie:
Business News
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"BW Offshore: Papa Terra project update"
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