6th Feb 2020 10:00
(Alliance News) - Energean Oil & Gas PLC said Thursday that despite the potential impact of the coronavirus outbreak on work being done, it still expects the Karish project, offshore Israel, to deliver first gas in the first half of 2021.
The FTSE 250 oil & gas firm said construction continues on the hull of the project's floating production storage and offloading unit, which is being built in Liuhueng Island, China.
China has issued emergency travel and transportation restrictions in order to halt the spread of the virus, which has reduced the availability of labour and resources in affected areas, including Liuhueng.
As a result, Energean said it has received a notice under its engineering, procurement, construction, installation & commissioning contract with oil & gas services provider TechnipFMC PLC relating to the travel restriction constituting a force majeure event.
This can potentially entitle TechnipFMC to claim an extension of time under the EPCIC contract.
Force majeure is a clause included in contracts to remove liability for natural and unavoidable events.
"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. However, work is still progressing well in the Chinese yard with approximately 550 staff on site; and Energean is working actively with TechnipFMC to ensure that all appropriate measure are being taken to avoid or mitigate any delay," Energean stated.
In London, shares in Energean were down 3.8% at 726.00 pence on Thursday. In Paris, TechnipFMC was up 1.4% at EUR16.32.
By Dayo Laniyan; [email protected]
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