BP says Angola oil project to cost more

4/28/2013

BP says Angola oil project to cost more

BY DENNIS BAKER

A massive BP oil development off the coast of Angola has come in $4 billion over budget after being delayed by a year, The Daily Telegraph reported, citing an executive.

The project, more than 100 miles offshore, was originally slated to start producing oil in late 2011 and to cost about $10 billion, the newspaper said. Instead, it began production in December last year.

While analysts thought the project would cost nearer $12 billion, the total is now expected to be "up over $14 billion" once all the wells have been drilled and connected, Gerry McGurk, BP Angola's VP, disclosed, according to the newspaper.

BP has a 27% stake in the project and costs will be divided among it and its partners, the newspaper said.

"We probably underestimated the length of time it was going to take both doing the conversion in Singapore, and the extent of the installation activity in Angola," Martyn Morris, regional President of BP Angola said, according to the Telegraph.

Dow Jones Newswires

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