SBM Offshore to Decommission YME Platform (Norway)

SBM Offshore, a Dutch based provider of systems and services to the global offshore oil and gas industry, has today announced that it will most likely be decommissioning the troublesome YME platform that has been sitting unmanned in the Norwegian part of the North Sea since mid-July, 2012. The decision on the project is still subject to the outcome of the negotiations with Talisman Energy.

To remind, SBM’s client, Talisman, which operates the Yme field, on July 11 decided to evacuate the Norwegian North Sea situated platform, due to the discovery of potential cracks in the grouting around the legs of the platform. Talisman also sent a letter to the Norwegian authorities warning that the Yme MOPUstor platform could collapse into the sea this winter.

In its press release issued this morning, SBM Offshore said it would take US$ 400 million impairment charge to reflect full write down of full book value of Yme platform.

SBM Offshore will also provide $200 million for the decommissioning costs. Asked about the possibility of the platform being redeployed somewhere else, the company said that was not an option. The company representatives have said that the decision to scrap the platform was not easy but it will provide stability for the company’s future projects.

The Yme field, located 100 km offshore Norway, was supposed to deliver first oil back in 2010, but has failed to do so due to the issues with the platform. SBM Offshore has said it expects to report a full year loss of around US$ 100 million for 2012.

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Offshore Energy Today Staff, December 20, 2012