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

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