SOLNA, Sweden, June 7, 2002 (PRIMEZONE) -- In February this year, Statoil and NCC Norway signed a declaration of intent regarding work connected to the Snohvit project in Norway. Due to delays in starting up this project, the agreement has now been canceled, since NCC and Statoil have not been able to agree on a new price.
"Statoil was not prepared to fully compensate NCC for the shorter and more disadvantageous construction period. Since all of NCC's operations are subject to the requirement that only profitable assignments may be accepted, it has not been possible to reach agreement on a mutually acceptable new price," said Per Nielsen Head of NCC International Projects.
The Snohvit project has been delayed due to surveys conducted by ESA. As a result of this delay, NCC would have been faced with a shorter and more disadvantageous construction period.
NCC's share of the Snohvit project, SEK 570 million, was included in orders received by the Group during the first quarter of 2002. The necessary adjustment will be made in the accounts for the first half of the year.
For further information, please contact: Per Nielsen, Head of NCC International Projects (Tel: +46-70-218 1838) Hans-Olof Karlsson, Senior Vice President - Corporate Communications, NCC AB (Tel: +46-8-585 52346, +46-70-392 9500)
All of NCC's press releases are available on www.ncc.se
NCC is one of the leading construction and property development companies in the Nordic region. NCC has annual sales of SEK 46 billion, with 25,000 employees.
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