Deep Panuke offshore platform de-installed

In its half-year earnings report, Dutch FPSO operator SBM Offshore stated that the Deep Panuke mobile offshore production platform (MOPU) has been de-installed from its namesake gas field offshore Canada.

SBM Offshore said that
the jack-up production platform was delivered to the Deep Panuke field back in
2011 to at the time operator Encana.

Natural gas from the
field, located offshore about 250 kilometres southeast of Halifax, Nova Scotia,
around 47 kilometres west of Sable Island in 44 meters of water, was processed
offshore and transported via a subsea pipeline to shore near Goldboro, Nova
Scotia.

It is worth noting that
production from Deep Panuke permanently stopped on in May 2018, and the
decommissioning activities are now underway. The platform will eventually be recycled.

“The Deep Panuke platform was safely de-installed from the offshore field in July 2020. During the next phase of the project, the platform will be prepared for transport to a recycling yard. The yard selection is planned for the second half of this year“, SBM Offshore stated in the 1H earnings report.

The Dutch offshore FPSO provider
added that the demobilization of the unit would not affect the contractually
agreed amount and timing of the financial considerations to be received by the
company as per the initial charter contract.

This includes the option
for the client to continue payments until the end of the initial charter period
or to elect for early lump-sum payment.

According to info from
SBM, the charter period for the Deep Panuke MOPU is until November 2021.

The company added that it
would recognize the remaining revenue in the second half-year of 2020 ($122
million), which also includes the portion of the financial consideration to be
received in 2021 in case no early lump sum payment is made ($79 million).