Offshore staff
(West Africa & Indonesia) - SBM Offshore NV has received confirmation of several turnkey supply orders for a variety of systems and services from its product line, including:
A contract for the design and supply of a deepwater catenary anchor leg mooring system (CALM) for installation offshore Nigeria in 1,285 m water depth. The system, to be delivered in 3Q/2007, will be used for the loading of export tankers from a spread moored FPSO installed at a distance of approximately 2 km from the export buoy.
An order for the design and supply of two mooring systems for an LPG storage vessel at the Belanak field operated by ConocoPhillips Indonesia Inc. The project will be executed in two phases, starting with the supply of a CALM system for the mooring of a chartered LPG tanker to be used as a temporary storage unit. The anchoring and riser systems of the CALM buoy will be designed to accommodate, in the second phase, the external turret system of the dedicated LPG storage vessel, which will be permanently moored for the life of field.
An order from SNEPCO for the supply and installation of a Trelline flexible export line for the Bonga field offshore Nigeria. The line, with a total length of over 2,000 m and a 20-in diameter, will be suspended between the spread moored FPSO and the export buoy at a depth of about 100 m under the water surface. The Trelline concept is based on the use of a bonded rubber hose and has been developed jointly by SBM and Trelleborg.
The cumulative portfolio value of the above contracts and of several orders recently received for offshore contracting services in West Africa is in excess of $100 million.
Eagle Production Ltd., an SBM Offshore NV subsidiary, has received a notice from Mobil Equatorial Guinea Inc., an ExxonMobil subsidiary, exercising Mobil Equatorial Guinea Inc.'s option under its current charter of the FPSOSerpentina to purchase the FPSO, with delivery pursuant to the purchase option scheduled to take place at the FPSO's present location in the Zafiro field offshore Equatorial Guinea on Nov.1, 2005.
The purchase price will generate a gain equivalent to the net present value of the forecast profits from the charter contract, resulting in a substantial increase of the company's expected net income for the year 2005. Repayment of the project-specific borrowings will reduce debt on SBM Offshore NV's balance sheet, adding space for funding of future projects for the growth of the company's lease fleet.
The contract between SBM Offshore Contractors Inc. and Mobil Equatorial Guinea Inc. covering the operation of theSerpentina will continue.
10/17/05
