SBM Offshore and Talisman Energy Norge AS (on behalf of its joint venture partners) have finally drawn a line under the Yme MOPUstor project after reaching an agreement to terminate the project with a settlement by SBM of US $470m.

The settlement includes the termination of the existing agreements, arbitration procedures, and the decommissioning of the MOPU (Mobile Offshore Production Unit). SBM already made a provision of $200m for estimated decommissioning costs in December 2012. Consequently, it will charge the difference of $270m to its first half results for 2013.

The company has already paid the total settlement value of $470m to Talisman.

Essentially the deal includes removing and scrapping the existing above-surface structure, and ending all joint activity for the agreed cost.

Ownership of the in-situ subsea structure will be transferred from SBM to the Yme licence holders, as they assess alternative development concepts for the troubled field.

Talisman will complete the work necessary to ensure the safe re-manning and removal of the MOPU from the field offshore Norway. SBM will manage the transportation and ultimate scrapping of the facility.

All parties will terminate the existing agreements and arbitration procedures with respect to the project.

Sietze Hepkema, a member of the Management Board of SBM Offshore, said the deal brought to an end a “period of significant uncertainty for the company”. He added: “We are confident that with an FPSO-focused strategy and our industry-leading technological skills, SBM Offshore can take full advantage of the strong long-term fundamentals in our markets.”

Offshore