SBM Offshore Receives LOI from Eni for Long Term Lease of FPSO Xikomba (Angola)

SBM Offshore announces that on behalf of its Joint Venture companies with Sonangol it has received a Letter of Intent (LOI) for twelve year lease and operate contracts from ENI Angola SpA for the block 15/06 development, offshore Angola.

The development plan involves relocation of the existing FPSO Xikomba, which has been operating under contract for ExxonMobil in Angola since 2003. Following the notice of termination of the current contract by ExxonMobil the unit is scheduled to stop operation in the first half of 2011. The unit will then undergo a major upgrade in order to meet the new project specific requirements. Part of that work will be performed in the PAENAL yard in Angola.

The LOI covers the early phase of the project and allows SBM Offshore to commence engineering and procurement work. The full scope lease and operate contracts are expected to be signed in the coming months.

The Dutch public company SBM Offshore N.V. is the holding company of a group of international, marine technology orientated companies. Its business is to serve on a global basis the offshore oil and gas industry by supplying engineered products, vessels and systems, and offshore oil and gas production services.

[mappress]

Source: SBM Offshore , April 15, 2011