SBM Offshore in talks to collect Yme insurance cash

The Pioneering Spirit getting ready to remove the Yme platform in August 2016. (Image: Allseas)

Dutch offshore facilities provider SBM Offshore has agreed heads of terms with some of it insurers for the settlement of SBM’s claims related to the troubled Yme platform SBM had delivered to Talisman (now Repsol) in 2011.

SBM Offshore said that the head of terms was reached with a 73.6% majority group of the US$500 million primary insurance layer for the settling of insurers’ shares of SBM Offshore’s insurance claim relating to the Yme project.

The final agreement, which remains subject to contract, is expected to be formalized in the coming weeks, the company said.

Under the settlement, SBM Offshore will receive a cash payment of around $247 million in full and final settlement of its claim against the settling insurers.

Following reimbursement first of legal fees and other claim related expenses incurred to date, the balance of the settlement cash will be shared equally between SBM Offshore and Repsol.

“SBM Offshore continues to pursue its claim against all remaining insurers including the two excess layers, the trial of which is scheduled to commence October 2018. Further details of this agreement and the claim are confidential,” SBM Offshore said.

To remind, SBM Offshore had delivered the Yme Mopustor platform to Talisman to produce oil from the Yme field in the Norwegian sector of the North Sea.

However, Talisman then identified structural issues with the platform, and evacuated the unit in mid-2012 saying there was a chance the platform could collapse.

The two companies then in March 2013 reached a decision to terminate the YME MOPUstor project, including scrapping the existing above surface structure, and ending all joint activity for an agreed cost. As part of the deal SBM Offshore agreed to pay a settlement fee of $470 million.

It was also agreed that the 14,000 tonne offshore structure and equipment would be dismantled and recycled by Veolia at Lutelandet.

On August 22. 2016, Allseas’ giant single-lift installation/decommissioning and pipelay vessel “Pioneering Spirit” removed the Yme offshore platform in a single lift.

The vessel used its 59 meters wide slot between bows to float in around the Yme platform and then lifted off the topside weighing more 13.000 tons in a single piece.

Offshore Energy Today Staff

Share this article

Follow Offshore Energy Today

Events>

<< Jul 2017 >>
MTWTFSS
26 27 28 29 30 1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30
31 1 2 3 4 5 6

Offshore Energy 2017

Offshore Energy Exhibition & Conference (OEEC) is Europe’s leading offshore energy event…

read more >

03rd OIL & GAS TANZANIA 2017

After a successful Oil & Gas Exhibition in 2016, Expogroup is all set for the 6th OIL & GAS AFRICA 2017…

read more >

Technology Forum (30th Offshore Licensing Round)

The event will bring operators, prospective investors and technology developers together and will cover technology areas that are critical…

read more >

SPE Offshore Europe 2017

Attending SPE Offshore Europe, recognised by offshore E&P professionals as Europe’s leading E&P exhibition and conference, will ensure you…

read more >

Jobs>

QC Coordinator Offshore

Do you attach great importance to quality and do you have an affinity with offshore projects? Then read about what Van Oord can offer you.

apply

Electrician

For one of our clients we are looking for a Ships Electrician. Our client is a company with worldwide activities. You will work in a rotation of 4 till 6 weeks on and off.

apply

Assistant Driller

Maersk Drilling Norge AS was established in 1990 and employs a staff of approximately 1000 people.

apply