SBM Offshore announces that Shell E and P Offshore Services B.V. (Shell) has notified the Company of the fact that Shell is exercising its right under the charter agreement to purchase the FPSO Turritella. The purchase allows a Shell affiliate to assume operatorship of the Stones development in its entirety, creating additional efficiencies through integration of sub-sea to surface operations and allowing leverage of its optimized Gulf of Mexico organization and infrastructure. The transaction is expected to close in early 2018, which provides for a transition window to ensure a safe and controlled handover of operations.
The company selling the asset is a joint-venture (JV) owned by SBM Offshore with 55% interest, Mitsubishi Corporation with 30% interest and Nippon Yusen Kabushiki Kaisha (NYK Line) with 15% interest. The transaction comprises a total cash consideration to the JV of c. US$ 1 billion. The net divestment proceeds, after taking into account the unwinding of the JV ownership and partner commitments, will primarily be used for project finance redemption and as such will decrease SBM Offshore’s proportional net debt position.
The award winning FPSO Turritella has been on hire since September 2, 2016 and forms an early phase in Shell’s Stones development in the Gulf of Mexico. The Stones development is located in 2,896 meters (9,500 feet) of water approximately 320 kilometers (200 miles) offshore Louisiana in the Walker Ridge area. FPSO Turritella is the deepest FPSO development in the world and has a turret with a disconnectable buoy allowing it to weathervane in normal conditions and disconnect from the FPSO upon the approach of a hurricane.
Shell and SBM Offshore will continue to build on their track record of almost 60 years of cooperation in the oil and gas industry.
SBM Offshore N.V. is a listed holding company that is headquartered in Amsterdam. It holds direct and indirect interests in other companies that collectively with SBM Offshore N.V. form the SBM Offshore group (“the Company”).
SBM Offshore provides floating production solutions to the offshore energy industry, over the full product life-cycle. The Company is market leading in leased floating production systems with multiple units currently in operation and has unrivalled operational experience in this field. The Company’s main activities are the design, supply, installation, operation and the life extension of Floating Production, Storage and Offloading (FPSO) vessels. These are either owned and operated by SBM Offshore and leased to its clients or supplied on a turnkey sale basis.
As of December 31, 2016, Group companies employ approximately 4,750 people worldwide. Full time company employees totaling c. 4,250 are spread over five regional centers, ten operational shore bases and the offshore fleet of vessels. A further 500 are working for the joint ventures with several construction yards. For further information, please visit our website at www.sbmoffshore.com.
The companies in which SBM Offshore N.V. directly and indirectly owns investments are separate entities. In this communication “SBM Offshore” is sometimes used for convenience where references are made to SBM Offshore N.V. and its subsidiaries in general, or where no useful purpose is served by identifying the particular company or companies.
The Management Board
Amsterdam, the Netherlands, July 11, 2017
|Half-Year 2017 Earnings – Press Release||August 9||2017|
|Trading Update 3Q 2017 – Press Release||November 8||2017|
|Full-Year 2017 Earnings – Press Release||February 8||2018|
|Annual General Meeting of Shareholders||April 11||2018|
|Trading Update 1Q 2018 – Press Release||May 10||2018|
|Half-Year 2018 Earnings – Press Release||August 9||2018|
|Trading Update 3Q 2018 – Press Release||November 15||2018|
Note: dates in bold have changed as communicated in SBM Offshore’s press release dated 10 July 2017
For further information, please contact:
Investor Relations Director
|+31 (0) 6 2114 1017
+33 (0) 6 4391 9302
|Telephone:||+377 9205 1732|
Group Communications Director
|Telephone:||+31 (0) 20 2363 170|
|Mobile:||+31 (0) 6 25 68 71 67|
This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation. Some of the statements contained in this release that are not historical facts are statements of future expectations and other forward-looking statements based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance, or events to differ materially from those in such statements. Such forward-looking statements are subject to various risks and uncertainties, which may cause actual results and performance of the Company’s business to differ materially and adversely from the forward-looking statements. Certain such forward-looking statements can be identified by the use of forward- looking terminology such as “believes”, “may”, “will”, “should”, “would be”, “expects” or “anticipates” or similar expressions, or the negative thereof, or other variations thereof, or comparable terminology, or by discussions of strategy, plans, or intentions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this release as anticipated, believed, or expected. SBM Offshore NV does not intend, and does not assume any obligation, to update any industry information or forward-looking statements set forth in this release to reflect subsequent events or circumstances. Nothing in this press release shall be deemed an offer to sell, or a solicitation of an offer to buy, any securities.