ShawCor to Resume All South Stream Line 1 Contracts
ShawCor informed that its Bredero Shaw pipe coating division has received notification from Europipe GmbH that the suspension of the work on its contract with Europipe for the concrete weight coating of Line 1 of the South Stream Pipeline has been lifted with immediate effect and that work on this contract is to be resumed.
In December 2014, ShawCor had announced the suspension of the majority of the work on its South Stream Pipeline contracts with Europipe and with Marubeni Sumitomo Consortium (with a combined value of approximately US$100 million) and with Saipem SpA (with a value of approximately C$30 million).
Earlier in May this year, Saipem lifted ShawCor’s Canusa-CPS suspension of the work on the Saipem contract in relation to South Stream Pipeline after the Italian contractor was cleared to continue pipeline construction operations in the Black Sea.
As of this date, all of the Company’s contracted work for Line 1 of the South Stream Pipeline, with a value remaining to be executed of approximately C$65 million, has been reinstated, and all of the Company’s contracted work for Line 2 of the South Stream Pipeline, with a value remaining to be executed of approximately C$60 million, continues to be suspended.