AMSTERDAM--Oil services company SBM Offshore NV (SBMO.AE) said
Tuesday it has paid $470 million to Canada-based Talisman Energy
Inc. (TLM) as part of a settlement reached over its troubled Yme
platform offshore Norway.
MAIN FACTS:
- SBM Offshore and Talisman Energy Norge AS (Talisman), 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.
-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.
- 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 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..
-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.
-The settlement with Talisman fulfils a condition precedent for
a 10% rights offering fully underwritten by HAL Investments ("HAL")
of new ordinary shares on terms as described in the press release
dated 20 December 2012 (the "Rights Offering"). At the Company's
Annual General Meeting of Shareholders ("AGM") on 2 April 2013, the
AGM will decide on the relevant resolutions in connection with the
Rights Offering.
-SBM Offshore will receive an additional amount of $ 27 million
from HAL as a result of the announced settlement with Talisman. HAL
will pay this additional amount by way of a share premium
contribution (agiostorting) on the 17.1 million new ordinary shares
(the "Private Placement Shares") it acquired through a private
placement on 20 December 2012, resulting in an adjusted issue price
of US$ 12.894 (twelve US Dollar and eighty nine point four cents)
per Private Placement Share, calculated in accordance with the
formula as described in the press release dated 20 December
2012.
- By Amsterdam Bureau, Dow Jones Newswires;
amsterdam@dowjones.com