Sevan Marine floaters close to completion

Construction of the deepwater drilling unit Sevan Driller is on schedule, according to Sevan Marine.

Offshore staff

ARENDAL, Norway --Construction of the deepwater drilling unit Sevan Driller is on schedule, according to Sevan Marine.

Last month the rig was relocated from Cosco's Nantong Shipyard in China to the nearby Qidong Shipyard, where the derrick has been fully erected and where remaining commissioning activities will be completed. Final delivery is due mid-year.

Sevan says it has incurred no capex for theSevan Driller II and Sevan Driller III rigs so far this year. If the company is unable to pursue drilling contracts for the rigs due to global finance constraints, the estimated downside for both units will be $70 million, of which $22 million has already been paid.

The hulls for the fourth and fifth Sevan 300 FPSOs remain under construction at China's Jiangsu Hantong Shipyard. Negotiations with the yard continue concerning the construction scope and progress.

As for floaters already in service, another well is due to be connected to theSevan Piranema on the Piranema field offshore Brazil, likely tripling daily production. Technical uptime for the platform so far this year is averaging 99.9%.

The FPSOSevan Voyageur is moored on the Shelley field in the UK North Sea, and hook-up of the subsea facilities should start shortly. Premier Oil and Gas Services, the probable new operator of Shelley, has agreed a production-sharing contract under which Sevan will be compensated for its actual operating cost and receive a tariff payment based on monthly revenue from the field's oil production.

05/07/2009

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