TechnipFMC Tells Energean Virus may Delay FPSO Project
LONDON (Reuters) — Gas producer Energean said on Thursday it had been told by TechnipFMC, which is building a vessel it needs to begin Israeli offshore production, that the coronavirus was a force majeure event.
Energean said it still expected its Karish project, which will use the floating production, storage and offloading (FPSO) vessel, to deliver first gas, as planned, in the first half of 2021.
The FPSO has a capacity of 8 billion cubic meters of gas a year.
But the company added that “the rapidly evolving nature of these circumstances is such that it is impossible, at this stage, to determine the overall impact, if any, on Energean’s project timeline.”
Energean shares were down around 2.7% at 735 pence at 1612 GMT, after earlier falling as low as 722 pence - their lowest in 11 months.
The death toll of the coronavirus, which originated in and is focused on China, has exceeded 500 people and triggered global travel restrictions.
“Energean has received a notice under its ... contract with TechnipFMC in relation to the travel restriction constituting a force majeure event, potentially entitling TechnipFMC to claim an extension of time,” Energean said.
“Energean has, in turn, issued corresponding notices to its buyers of Karish gas and other relevant counterparties.”
Energean’s main buyers are Israeli utilities.
Related News
Related News
- Keystone Oil Pipeline Resumes Operations After Temporary Shutdown
- Freeport LNG Plant Runs Near Zero Consumption for Fifth Day
- Biden Administration Buys Oil for Emergency Reserve Above Target Price
- Mexico Seizes Air Liquide's Hydrogen Plant at Pemex Refinery
- Enbridge to Invest $500 Million in Pipeline Assets, Including Expansion of 850-Mile Gray Oak Pipeline
- Enbridge Receives Approval to Begin Service on Louisiana Venice Gas Pipeline Project
- U.S. to Acquire 3 Million Barrels of Oil for Emergency Reserve in September
- AG&P LNG Acquires 49% Stake in Vietnam's Cai Mep LNG Terminal
- BP's Carbon Emissions Increase in 2023, Ending Decline Since 2019
- Texas Sues EPA Over Methane Emission Rules for Oil and Gas Sector
Comments