A BP oil development project off the coast of Angola has overshot its budget by US$4bn after being delayed by more than a year
The project, more than 161km offshore, was originally slated to start producing oil in late 2011 and was expected to cost about US$10 billion, The Daily Telegraph said. The offshore field finally began production in December 2012.
Gerry McGurk, BP Angola’s vice president, said, “While analysts thought the project would cost an additional US$2bn, the total cost is now expected to be up over US$14bn once all the wells have been drilled and connected.”
BP has a 27 per cent stake in the project and costs will be divided among it and its partners, the UK newspaper reported.
Martyn Morris, BP Angola’s regional president, said, “We probably underestimated the length of time it was going to take, while doing the conversion in Singapore and the extent of the installation activity in Angola.”
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