06 May 2016
Petrofac confirms that today it has reached final commercial settlement with its client in respect of the Laggan-Tormore gas plant in the Shetland Isles.
As part of the agreement, our client has informed us that there will be a partial application of Liquidated Damages.
In bringing the project to a conclusion, we now expect to recognise a final charge in the first half of the year of £70 million, principally made up of Liquidated Damages.
Whilst it is clearly disappointing that a portion of Liquidated Damages has been applied, Petrofac is nevertheless satisfied that this brings to an end the project, which has been operating successfully and exporting gas since February this year.