SBM Offshore N.V.
amsterdam : SBMO

June 15, 2012 01:45 ET

SBM Offshore receives interim award for Fram FPSO from Shell under framework agreement

SCHIEDAM, THE NETHERLANDS--(Marketwire - Jun 15, 2012) - SBM Offshore is pleased to announce that it has received a letter of interim award (LOIA) from Shell for the supply, lease and operation of a FPSO for the Fram field in the UK sector of the North Sea. The LOIA allows SBM Offshore to commence engineering and procurement of long lead items to ensure timely completion of the planned Fram FPSO project, which is subject to a Final Investment Decision.

In March 2012, Shell and SBM Offshore signed an Enterprise Framework Agreement (EFA) covering a term of five years, with an option to extend for another five years, to supply small and medium sized FPSOs globally on a lease and operate basis. The Fram FPSO, subject to a Final Investment Decision, will be the first project to be developed under the terms of the EFA.

The hull of the FPSO will be based on a converted Aframax tanker and will incorporate an internal turret permanent mooring system. The crude will be offloaded to shuttle tankers and the gas exported via the existing Fulmar pipeline.

Bruno Chabas CEO of SBM Offshore said: "We are delighted by the letter of interim award for this FPSO lease and operate project in the North Sea for Shell. This award reaffirms our strategy to focus on FPSOs as we develop SBM Offshore's position as the world's leading FPSO provider. The agreement signed earlier in the year is a commitment to work with Shell on a long term basis to develop offshore floating solutions. We look forward to developing many more FPSO projects with Shell around the world in the future".

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SBM Offshore press release:

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Source: SBM Offshore N.V. via Thomson Reuters ONE [HUG#1619831]

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