Mechanical completion of the Lubiatów-Międzychód-Grotów oil and gas production facilities accepted
On October 17th, the Acceptance Committee of the Owner (PGNiG) signed the Mechanical Completion Certificate for the LMG oil and gas production facilities.
The signing of the certificate increases the probability that the Final Acceptance will take place ahead of schedule. The signing of the certificate also opens door for the Consortium to receive a contractual payment equal to 10% of the contract price. This is in line with the contract terms and with the provisions of a trilateral agreement signed by PBG, PGNiG and Bank PKO on October 4th, whereby the Parties agreed upon new rules for the day-to-day financing of the project and making payments by PGNiG and PBG (as reported by PBG on October 6th). Furthermore, the mechanical completion acceptance gives grounds for securing a permit to start the commissioning of the plant fed with extracted hydrocarbons.
To remind you, the Consortium comprising PBG (leader), Tecnimont KT S.p.a. and Thermo Design Engineering Ltd. entered into the EPC contract for the project with PGNiG on August 11th 2008. The contract price is PLN 1.4bn VAT-exclusive. The project is scheduled for completion in April 2013.