SBM Offshore and Talisman Energy to Terminate YME MOPUstor Project
SBM Offshore and Talisman Energy Norge AS (Talisman), have reached a decision to terminate the YME MOPUstor project in the Norwegian North Sea, including scrapping the existing above surface structure, and ending all joint activity for an agreed cost.
Following an extended period of operational and execution delays, the decision has been taken to remove the MOPU (Mobile Offshore Production Unit), which will subsequently be scrapped. Ownership of the in situ subsea structure will be transferred from SBM Offshore to the Yme license holders, as they assess alternative development concepts for the field.
The platform has been evacuated since mid-July 2012 due to cracks in the grouting around the legs of the facility.
Subject to an upfront settlement payment of US$ 470 million made by SBM Offshore, Talisman will complete the work necessary to ensure the safe re-manning and will then remove the MOPU from the Yme field. SBM Offshore will manage the transportation and ultimate scrapping of the facility.
All parties will terminate the existing agreements and arbitration procedures with respect to the YME project.
“Delays to first production on the Yme project have been a great disappointment to the Yme joint venture partners,” said Paul Warwick, Executive Vice-President Europe-Atlantic, Talisman Energy. “Recent analysis has concluded that a new topsides solution is needed in order to develop the Yme field. The arrangement with SBM Offshore allows the Yme joint venture partners to continue to evaluate options for the Yme field.”
Sietze Hepkema, member of the Management Board of SBM Offshore N.V. said: “Today we have resolved the legacy difficulties of Yme at an agreed cost, bringing an end to a period of significant uncertainty for the company. We are confident that with an FPSO-focused strategy and our industry-leading technological skills, SBM Offshore can take full advantage of the strong long-term fundamentals in our markets.”
The MOPUstor concept, developed by GustoMSC, provides a solution for short life oil fields without direct access to pipeline infrastructure in water depths and environment not suitable for an FPSO. This MOPUstor concept consists of a steel storage tank supported directly on the sea bed, three (or four) tubular legs, firmly connected to the storage tank, a barge type platform deck that can be jacked along the legs and a jacking system.
Press Release, March 12, 2013