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