SBM Offshore, Talisman reach settlement on Yme platform
AMSTERDAM -- SBM Offshore has paid $470 million to Talisman Energy as part of a settlement reached over its troubled Yme platform offshore Norway.
SBM Offshore and Talisman Energy Norge, on behalf of itself and its joint venture partners, have reached a decision to terminate the YME MOPUstor project, including scrapping the existing above surface structure, and ending all joint activity for an agreed cost. 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.
Subject to an upfront settlement payment of $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 anage the transportation and ultimate scrapping of the facility.
SBM Offshore has already made a provision of $200 million for estimated decommissioning costs in December 2012. Consequently, the company will charge the difference of $ 270 million to its first half results 2013. The company has paid the total settlement value of $470 million to Talisman.
Dow Jones Newswires