2008 Annual Report - SBM Offshore

40 SBM Offshore Annual Report 2008 / Report of the Board of Managementdisconnectable FPSO Okha, to be installed offshoreAustralia as replacement of the existing FPSOCossack Pioneer. Delivery of the unit is scheduled forthe fourth quarter of 2010;• A call off frame contract was obtained from BPAngola for the supply of FPSOs offshore Angola;• A contract was awarded by Total E&P Angola to aconsortium of SBM Offshore/APL for the supply andinstallation of the Oil Loading System on the Pazflorproject. The Company’s scope of work consists ofsupply of the (2) Oil Offloading Lines, to be basedon the Trelline, and the offshore installation of thecomplete Oil Loading System;• A contract was obtained from Resolution ShippingLtd. (Cyprus), a subsidiary of Vroon Group, for thesupply of two 1,000 ton cranes and two jackingsystems, with a total jacking capacity of 22,500 tonseach, for two wind turbine installation jack-up vessels(SBM Offshore group design).Details of these main events and of the other activities inthe year 2008 are presented hereafter.Lease and Operate ActivitiesAt the start of 2008 there were twenty-two long-termlease and operate contracts in hand for production and/or storage systems, seventeen of which were at that datein operation and the other five units under construction.Furthermore, there were contracts for the management ofthe operation of three client owned units.All units in operation performed without any major problemsduring the year at a cumulative average throughput ratejust above 850,000 barrels per day. A total of 311 millionbarrels were exported from the fleet in the year 2008,representing a total of 545 tanker offloading operations.Total production uptime of the fleet reached 99%. This highuptime has been the basis for the payment of substantialbonuses, in particular for the units operating under longtermcontracts with Petrobras and the FPSOs operatingfor ExxonMobil, for which the operating contracts aresubject to bonus schemes taking into account not only theproduction performance but also safety and environmentalstatistics and adherence to the operating budget.On 1 January 2008, FPSO Mondo started operations inthe Kizomba ‘C’ field offshore Angola under a fifteen yearlease and operate contract with Exxon Mobil. The unit hasbeen in operation for over a year and has achieved 99.7%up time and an average daily production of approximately90,000 barrels of oil per day.In July, FPSO Saxi Batuque started operations in theKizomba ‘C’ field offshore Angola under the fifteen yearlease and operate contract with Exxon Mobil. The unit hasbeen in operation for 184 days on 31 December 2008 andachieved 96.9% up time with an average daily productionof approximately 90,000 barrels of oil per day.With FPSO Mondo and FPSO Saxi Batuque in operation,the total number of leased FPSOs in production in Angolain partnership with Sonangol has now reached five.In May 2008, the Company received a one-year extensionof the lease and operate contract for the FPSO Falcon withEsso Deepwater Limited, a subsidiary of Exxon Mobil. TheFPSO Falcon, which is fully owned and operated by theCompany is consequently under contract until 23 November2009. The FPSO is currently laid up in anticipation of ExxonMobil finding a suitable field development for which it canmobilise the FPSO.Also in May 2008, FPSO Mystras Produção de PetroleoLTDA (FMPP), a 50% owned subsidiary of SBM OffshoreN.V., received a notice from Agip Energy and NaturalResources (Nigeria) Ltd. (AENR), exercising AENR’s optionunder the Service Agreement to purchase the FPSOMystras. The delivery of the unit took place on station in