These cost increases come from several areas. A portion of these costs relates to extended testing and installation costs of the offshore pipelines. These costs and the associated delays were caused in part by bad weather conditions and in part by sealing issues discovered during the final testing of pipeline connections. Additional costs were also incurred due to engineering design changes at three onshore pump stations. Lastly, project engineering and project management costs have increased as a result of these additional onshore and offshore requirements.
These estimates of total project costs reflect management's best estimates. There may be additional costs, which are difficult to forecast with current information, as the project proceeds toward its commissioning. The offshore oil loading project contract was awarded in 2002 and is scheduled for completion in the third quarter of 2005.
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