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Four executives from Mellitah Oil & Gas, a JV between Libya’s National Oil Company and Italian firm Eni, have been detained in Tripoli for alleged fraud over a $425mn floating storage and offloading vessel (FSO) commissioned in 2012.
The 1.5mn-barrel vessel was built by South Korean yard STX Offshore & Shipbuilding and began operating in February on the Bouri oil field, 120km offshore. It was delivered in May last year, some 11 months late.
The executives were detained by the Rada Deterrence Force, which alleges that Eni inflated the contract price, penalty clauses were not exercised for late delivery and the project overran by $100mn despite a 10% overrun limit. (CONTINUED - 142 WORDS)