SBM Offshore N.V. announces the following news:
1. Aseng FPSO Contract Award and Joint Venture Agreement with GEPetrol
Further to a previous announcement dated 26 August 2009, SBM Offshore now advises that the formal contract has been signed with Noble Energy EG Ltd., a subsidiary of leading US-based independent energy company Noble Energy Inc., for the provision, lease and operation of an FPSO for the development of the Aseng field, offshore Equatorial Guinea.
SBM Offshore has entered into a Joint Venture with Compania Nacional de Petroleo de Guinea Ecuatorial (GEPetrol), the state oil company of Equatorial Guinea, for the ownership and operation of the Aseng unit. Under this agreement, SBM Offshore will own a 60% share of the joint venture with GEPetrol holding the remaining 40%.
2. FPSO Falcon Redelivered
SBM Offshore has received a notice of termination from Esso Deepwater Limited a subsidiary company of Exxon Mobil Development Corporation for the lease and operate contract of the FPSO Falcon. The effective date of termination of the contract and redelivery of the FPSO Falcon to SBM Offshore has been confirmed as 3 December 2009. No further day rate income will be received after that date. The transaction does not result in any non-recurring gains or losses.
The FPSO Falcon commenced operations in 2002 for an initial 6 year lease and operate period which was subsequently extended twice. The remaining book value of the FPSO at the end of the contract is below 25% of the original value.
The Company will actively market the FPSO Falcon for redeployment to its clients for offshore oil and gas field developments worldwide. Until a new contract has been obtained the FPSO Falcon will remain in lay up conditions in the Far East.