Response from Les
Thought you all might want a look at what Les wrote me Last Wednesday’s announcement was obviously a great disappointment to everyone. The GSA Joint Venture has been badly let down by Petrofac. They have not delivered the promised improvements in speed and productivity that were always just around the corner. We have agreed a new schedule with them that does not require any improvement in their performance – that’s why we see such a long delay. It is underpinned by an incentive arrangement put in place between Petrofac and the Remontowa shipyard. At the moment Petrofac’s incentive is 6000 boepd of production, $m’s per month whilst in the shipyard and their reputation. The rest of the project is progressing well. The fifth well is coming to a conclusion and the remaining subsea work is scheduled for between now and the summer. We will be waiting for the vessel. We know our credibility is low and that we need to provide regular updates on FPF-1 progress in order to build confidence in the new schedule. Thanks Les