A massive BP PLC oil development off the coast of Angola has come in $4 billion over budget after being delayed by a year, The Daily Telegraph reported Monday, 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 vice president, 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.
Copyright (c) 2012 Dow Jones & Company, Inc.
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