LONDON (Alliance News) - Serinus Energy PLC on Tuesday said the two units needed for its Romanian Moftinu gas project will take longer to complete than expected due to a number of issues.
Shares in the upstream oil and gas firm were down 15% at 13.00 pence on Tuesday.
Serinus has filed suit against the subcontractors hired to build the low temperature separation and triethylene glycol units, and had both units transported to Romania where a different contractor will repair them.
The two units were transported from Canada, where they had been manufactured, and arrived in Romania in late January. However, following the unpacking a re-assembly of the the units, both were found to be less complete than anticipated.
"Numerous components were missing from the units, some instruments were not properly calibrated to design specifications, and some fabrication work had to be redone to correct subpar fabrication work," Serinus said.
Completion, testing, and certification of the units are all expected to take two weeks, provided no further issues arise.
"Subject to procurement and testing the company expects the Units to be moved to the Moftinu gas plant in early to mid-March. Once onsite it is expected that assembly and installation will take approximately one week," Serinus said.
The units will then be commissioned and gas production will flow through the plant to be sold.
Installation, commissioning, and testing had originally been anticipated for December 2018 but, in November, Serinus lost faith in this timetable being achieved.
Serinus said Monday it is claiming more than USD25 million in damages for mismanagement and the misappropriation of funds surrounding delivery of the two units.
Serinus Energy (SENX)