SBM Offshore Signs Contract With Eni On FPSO Xikomba

Oil services company SBM Offshore NV (SBMO.AE) said Wednesday it has signed a 12-year contract with Italy's Eni SPA (ENI.MI) for leasing and operating a floating oil production platform offshore Angola.

MAIN FACTS:

-The FPSO Xikomba is part of a joint-venture between SBM Offshore, Sonangol, Sonasing and OPS.

-The order had been previously announced under a Letter of Intent (LOI) on 15 April 2011.

-Financial details weren't disclosed.

- The development plan involves relocation of the existing FPSO Xikomba, which has been operated under contract for ExxonMobil in Angola since 2003. The unit will undergo a major upgrade in order to meet the new project specific requirements. Part of that work will be performed in the PAENAL yard in Angola.

-The investment required for the upgrade and relocation of the FPSO Xikomba will be comparable to a large FPSO conversion project. First production from the FPSO is planned for 2014.

By Amsterdam Bureau, Dow Jones Newswires; amsterdam@dowjones.com