Offshore project faces cancellation as costs spiral

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By Xu Yihe Singapore

 17 May 2012 22:59 GMT

TAIWAN’S government-owned CPC Corporation may cancel the long-awaited development of the ­island’s first offshore project in the Taiwan Straits due to cost overruns.

Sources familiar with the project, which has suffered previous delays, said the cost of the offshore engineering, procurement and construction (EPC) for developing the F Block is 50% higher than the originally-budgeted Taiwan $7.5 billion (US$250 million).

CPC’s offshore task force has submitted the latest budget to management for approval.

Sources said there is a possibility that CPC management will reject the new budget, which will mean that development of the field will be indefinitely shelved.

“It will take at least six months to get through CPC’s internal red tape, which may end in…

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