16th Apr 2020 10:28
(Alliance News) - Petrofac Ltd said Thursday the Abu Dhabi National Oil Co has cancelled two contracts for work on the Dalma gas development project.
Shares in the oilfield services firm were down 13% in London on Thursday mid-morning at 161.05 pence each.
The contracts, awarded in February, were worth about USD1.65 billion, with Petrofac's Emirates joint venture expecting about USD1.5 billion.
The company stressed it will continue to tender major contracts in Abu Dhabi despite this setback.
"Petrofac is committed to working with ADNOC over the coming weeks to explore alternative options to deliver this project in a way that supports their strategic objectives within the current challenging environment," the company said.
Petrofac added that it is continuing to progress its remaining backlog of about USD7 billion as planned.
"However, it anticipates this development may have an impact on the timing of their awards," the company added.
By Paul McGowan; [email protected]
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