Annual Report 2010 - SBM Offshore

Report of the Board of Management
day of production fluids, associated gas treatment for
5 million cubic metres per day with compression and
carbon dioxide removal and a water injection facility
for 150,000 barrels per day. The unit will be owned and
operated by a consortium comprising affiliated companies
of SBM Offshore, QGOG, Nippon Yusen Kabushiki
Kaisha (NYK), and ITOCHU Corporation (ITOCHU). The
Company’s final shareholding in the Joint Venture will
in principle be 50.5% but will ultimately depend upon
financing decisions yet to be finalised. In any case the
Company’s share will not be less than 44.4%.
FPSO P-57
The Company started operations on the FPSO P-57
for Petrobras following delivery and start up of the unit
offshore Brazil in December 2010. The Company will
operate the FPSO for the coming three years (more
information regarding this project is provided under the
Turnkey Supply Activities section of this report).
Angola
FPSO Kuito
The lease and operate contract was extended for
one year until 26 January 2011 and then for a further
period until 31 March 2011. Discussions continue
with Chevron’s subsidiary company Cabinda Gulf Oil
Company (CABGOC) in Angola with respect to a life
extension project and further extensions to the FPSO
Kuito lease and operate contract.
FPSO Xikomba
At the beginning of the year, Esso Angola Exploration
Limited extended the lease and operate contract for the
FPSO Xikomba by one year with a 90-day notice period
for termination. Notice of termination has duly been
received with the unit scheduled to complete its service
at Xikomba field in mid 2011.
West Africa
FPSO Aseng
The main focus in 2010 for the Aseng project was
engineering and procurement, as well as the start of
refurbishment and conversion works of the vessel at
Keppel shipyard and module construction at yards in
Singapore. Engineering and procurement activities
are practically complete and overall progress on construction
is satisfactory and in line with the scheduled
58 SBM Offshore – Annual Report 2010
departure for Equatorial Guinea by late summer 2011.
The start of oil production is forecast at the beginning
of the year 2012 in accordance with the contractual
start date of the fifteen year lease and operate period of
the unit for Noble Energy EG Ltd.
Financing of the investment in the FPSO asset for
the project has been secured with a US$ 602 million
Project Debt facility for the Aseng Production Company
Limited of which the Company owns a 60% share and
GEPetrol holds the remaining 40%. The facility is a
combination of a Bank Loan of US$ 400 million and a
GEPetrol Shareholder Loan of US$ 202 million with a
five-year tenor.
FSO Unity
Total Exploration Production Nigeria Limited (TEPN) has
extended the Consortium Operation and Maintenance
Contract for one year from June 2010, and submissions
are to be made early in 2011 with a view to continuing
for additional years. FSO Unity has been operated
and maintained by a Consortium of Saipem and SBM
Offshore since 2003.
LPG FSO Nkossa II
The lease and operate contract for the Nkossa II with
Total Congo was extended for a firm period of five
years with options for further extension. The initial
lease and operate contract commenced in 1996 when
the Company delivered and started operation of the
unit offshore Congo. The unit is owned by Maersk Ltd
(51%) and SBM Offshore (49%).
Laid Up
FPSO Falcon
The FPSO Falcon was redelivered to the Company in
December 2009 by Esso Deepwater Limited, a subsidiary
of ExxonMobil following notification of termination
of the existing lease and operate contract in September
2009. The Company is actively marketing the unit for
new FPSO developments worldwide. Until a new contract
is obtained, the FPSO Falcon will be maintained in
lay-up status in Asia.
Under Construction
MOPUstor Yme
The seabed-supported storage tank of the Mobile