UK: Sevan and E.ON Ruhrgas Agree to Extend Letter of Intent for Huntington Project

Sevan Marine ASA and E.ON Ruhrgas UK E&P Limited (“E.ON”) as operator of the Huntington project have made good progress in the commercial agreements for the lease of the FPSO Sevan Voyageur.

Huntington is operated by E.ON with an equity share of (25%). The other joint venture partners are Premier Oil ONS Limited (40%); Altinex Oil (UK) Limited (20%) and Carrizo Oil & Gas, Inc. (15%).

The parties have agreed to extend the current Letter of Intent until October 1, 2010, to allow the parties to continue the negotiations with the aim to finalize the contractual documentation by that date.

The Huntington partners have agreed to continue to fund certain Sevan costs and Long Lead items for the upgrade work in order to maintain the Huntington project schedule for first oil production. The upgrade work will be carried out at the Nymo yard in Arendal, Norway.

E.ON Ruhrgas Exploration & Production has activities in six countries and produced 4.4 billion cubic meters of natural gas in 2009 (at equity gas included).


Source: SevanMarine, August 23, 2010: