ShawCor Ltd. has previously announced that its Bredero Shaw pipe coating division has received contracts from Europipe GmbH and Marubeni Sumitomo Consortium with a combined value of approximately US$100 million for pipeline coating for Lines 1 and 2 of the South Stream Offshore Pipeline project; and that its Canusa-CPS division has received a contract with a value of approximately C$30 million from Saipem SpA to provide field joint coating services for Line 1 of the South Stream project.
Work has commenced on each of these projects and approximately 20% of the expected revenue therefrom has been generated to date.
ShawCor notes the recent statements regarding the South Stream project made by the Russian authorities and Gazprom's Chairman as reported in the media. Based on suspension notices or other information recently received from its customers, the majority of the work on the South Stream contracts with Europipe, Marubeni Sumitomo and Saipem has been suspended until further notice. The suspensions received are applicable for a limited period of time and none of these contracts has been terminated to date. At this time, there can be no assurance as to whether these projects will be reactivated or subsequently terminated.
ShawCor Ltd. is a global energy services company specializing in products and services for the pipeline and pipe services and the petrochemical and industrial segments of the oil and gas industry. The Company operates through nine divisions with over ninety manufacturing and service facilities located around the world.
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