BP’s (LON: BP) Greater Tortue Ahmeyim (GTA) LNG project will now start in the third quarter, rather than the second, and also faces a government audit.
The oil ministries of Mauritania and Senegal issued a joint statement today announcing the move. The ministries said they had held working meetings on January 18 and 19 in Dakar as part of their development monitoring of the project.
The statement said the meetings provided a way to assess “the overall impact of the delay recorded in the execution of the project and the increases in announced costs”.
While the GTA project has encountered problems, Mauritania and Senegal both expressed their determination that they would support the project. They pledged to guarantee contractors’ rights and the interests of their countries.
The two states will “remain vigilant” in the operational, economic and financial support, in partnership with BP and Kosmos Energy (NYSE: KOS).
Mauritania Minister of Petroleum, Minerals and Energy Nani Ould Chrougha held a press conference with Minister of Petroleum and Energies Antoine Felix Abdoulaye Diome in Dakar.
Mauritania said the two sides had agreed to carry out an audit of the project’s costs. GTA LNG was due to start in April 2022, the ministry said. It is now expected to be 28 months late.
The two officials agreed that they were united in their outlook on the project and its development.
Challenges
Development plans on the GTA project took a knock during the pandemic. There was a disagreement between BP and the builders of the floating LNG (FLNG) facility. BP declared force majeure in April 2020 but work restarted later that year.
The Gimi FLNG vessel, which BP will use at GTA, is currently offshore Nouakchott, according to MarineTraffic. The FPSO, meanwhile, is in Tenerife.
BP is due to announce its next set of results on February 6.
Recommended for you
