The company said the expense is due to change orders on the FPSO and technical troubleshooting for machinery equipment supplied by its client.
Modec added that "compensation of incurred expenses is under discussion with the client" but in the meantime the company had booked the operating expensein the first quarter 2011 financial statement.
According to a February 2011 earnings presentation, Modec has one FPSO project under construction in Singapore, and that is the FPSO PSVM, which is being built at Jurong Shipyard for BP, and is due to produce first oil this year at the ultra deep-water Plutao, Saturno, Venus and Marte (PSVM) fields in Block 31 off Angola.
Jurong
