FMC Technologies - Sonatrach project nearing completion

FMC Technologies' floating systems subsidiary is nearing completion of an offshore oil loading project in Algeria for Sonatrach-TRC.

Offshore staff

(Africa) - FMC Technologies' FMC SOFEC Floating Systems subsidiary is nearing completion of an offshore oil loading project in Algeria for Sonatrach-TRC, the Algerian oil and gas company.

The company has received customer acceptance from Sonatrach-TRC of the Bejaia site and ownership of the site has been transferred to Sonatrach.

At the Arzew site, the tanker loadings and other tests have been completed, and the company has applied for final customer acceptance.

At Skikda, the final site, the customer acceptance testing is in progress.

"We are pleased with the recent progress we are making on the Sonatrach project and believe we are nearing final completion of the project scope," said Joseph H. Netherland, chairman, president and CEO.

Sonatrach and FMC Technologies continue, however, to negotiate various claims concerning delays and work stoppages.

These negotiations could continue after the physical completion of the contract.

In October 2005 the company expected higher costs associated with the installation of the offshore oil loading project.

The total estimated cost increase was approximately $16 million.

FMC Technologies said the cost increases were primarily the result of higher onshore and offshore construction costs, continued customer caused delays, and higher commissioning costs at the three sites


01/31/06

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