Yme, Deep Panuke offshore production projects still delayed

SBM Offshore says it is taking action to improve productivity on the delayed Yme field development offshore Norway.

Offshore staff

MONACO – SBM Offshore says it is taking action to improve productivity on the delayed Yme field development offshore Norway.

Although the MOPUstor jackup production platform is on location, commissioning and start-up is taking longer than expected. Bad weather is partly to blame, the company says, and there has also been an increase in offshore work scope.

SBM is working to reach an agreement with operator Talisman Energy on the optimal path to completion of the platform and first production. Dialogue is constructive, and the required resources are being made available.

However, following a reassessment of the work volumes offshore, productivity levels, and potential recovery from ongoing arbitration proceedings, SBM has determined that substantial additional cost and time will be required to complete the project.

SBM’s delivery of the Deep Panuke platform to EnCana offshore Nova Scotia has also been delayed due to low productivity and additional work on certain systems, again requiring further cost provisions. First gas now looks likely in summer 2012.

The first Yme arbitration case has been concluded in favour of the client; furtherlegal proceedings continue on both projects.

3/2/2012

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