Norway: Sevan Marine Plans USD 25 Million Investment for FPSO Upgrade

Sevan Marine ASA , a company specialized in owning, operating and licensing FPSOs and drilling units, based on its patented cylindrical floater technology announces fleet commercial uptime.

In Q1 2011, the FPSO Sevan Piranema had a commercial uptime of 88% due to continued problems with the gas cooling and booster compressor systems.

The Company is evaluating the need for additional investments of up to USDm 25 in the process equipment on the FPSO to improve the commercial performance.

In Q1 2011, the FPSO Sevan Hummingbird had a commercial uptime of 105%, including bonus achieved for high production levels.

The FPSO Sevan Voyageur is currently undertaking an upgrade project to prepare for operation on the Huntington field under its five year fixed term contract with extension options with E.ON Ruhrgas. Following a review of the project, the expected total project cost has increased from USDm 90 to USDm 135, including contingencies and start-up costs. The cost increase is mainly due to additional steel and engineering requirements. The Board has initiated corrective measures to secure the project execution going forward. The delivery from the yard is scheduled for end of Q4 2011 and first oil in Q1 2012.

Financial update post IPO of Sevan Drilling ASA

Following the IPO of Sevan Drilling ASA and the resulting de-consolidation of the drilling segment from the Company’s consolidated financial statements an accounting loss has been estimated to approximately USDm 214 based on the pro forma balance sheet at March 31, 2011, and the issue price in the IPO. The write down is of non-cash nature and will be reflected in the Q2 2011 financial results.

The overviews below show the condensed preliminary balance sheet and profit and loss statement before tax for Q1 2011, condensed preliminary pro forma balance sheet and profit and loss statement before tax for Q1 2011 and condensed pro forma balance sheet as per January 1, 2011. The pro forma statements represent the consolidated financial statements of Sevan Marine ASA as if the IPO of Sevan Drilling had been effectuated prior to the applicable balance sheet dates.


Source: Sevan, May 23, 2011.