A developer that awarded a US$ 650 million contract to Canadian contractor SNC Lavalin in November 2011 has terminated the deal.
SNC Lavalin said the project – to construct a froth treatment plant in Fort McMurray, Alberta, Canada as part of an oil sands development – would be de-booked from its fourth quarter 2012 backlog. It added that it did not expect its earnings to be impacted as a result.
The contractor said it had received a notice of termination for convenience from its client. At the time that the contract was awarded last year, SNC Lavalin said construction was scheduled to begin in February 2012.