SBM Offshore – First oil FPSO Frade – Turkmenistan MOPU/FSO sold – Deep Panuke financing confirmed – FSO Unity extension

1. FPSO FRADE starts production
The Company, under an EPCI contract with the Frade B.V., has completed installation of the ‘FPSO Frade’, which commenced oil production on 20 June 2009. The FPSO Frade is situated in the Frade field, which is located 375 kilometres northeast of Rio de Janeiro in the Campos Basin, offshore Brazil, in approximately 1,080 meters of water depth.

The ‘FPSO Frade’ is moored by an internal turret able to accommodate 33 risers and has topsides capacity for the production of 100,000 barrels of oil treatment and compression of 106 million standard cubic feet of gas, and treatment and injection of 150,000 barrels of water per day.

The ‘FPSO Frade’ is the most complex system the SBM has supplied in terms of topsides facilities with project duration of 36 months from signing of the contract in 2006. A total of approximately 18 million work-hours have been attributed to the project.

SBM Offshore started operations of the unit following production readiness on the 19 June 2009 under a separate Operations Contract for a period of three years.

2. Turkmenistan MOPU and FSO purchase transaction completed
The purchase by Petronas Carigali of the MOPU and FSO facilities (MOPU/FSO Oguzhan) currently operating in Turkmenistan has been completed with an effective date of 19 June 2009. As previously announced, the transaction generates non-recurring turnover of US$ 51.5 million, and a post-tax profit of US$ 30 million.

SBM Offshore supplied the MOPU and FSO facilities in May 2006 under a lease and operate contract of three years with an additional three years of extension options. Since start-up the facilities have been operating at a 99.5% production uptime with a total of 158 successful cargo offloads to shuttle tankers.

3. Deep Panuke MOPU project finance loan signed
SBM Offshore confirms the successful completion of its US$ 350 million project loan facility to finance the construction and leasing of the Deep Panuke Production Unit. The unit is currently under construction and is scheduled to start production in late 2010 under an 8 year lease and operate contract for Encana Corporation a leading producer of natural gas in North America. Annual extension options provide for up to a maximum of twelve additional years charter.

The Deep Panuke production facilities consist of a jack-up type of production platform, based on SBM Offshore’s MOPU design, and will be located about 175 kilometres offshore Nova Scotia in a water depth of approximately 44 metres and harsh environment. The unit is designed to produce market-ready gas exported through a subsea pipeline to customers in Canada and the north-eastern United States.

4. FSO Unity operating contract extension of six months
The operating contract with Total for the FSO Unity, located on the Amenam field offshore Nigeria, has been extended by twelve months until 30 June 2010.