rss icon Subscribe
desktop mobile

SBM Offshore, Repsol Get $247 Mln in Yme Insurance Settlement

Posted by Eric Haun

Dutch oil industry services group SBM Offshore and Spanish energy firm Repsol will share an insurance payment of $247 million, less legal costs, related to a troubled Norwegian offshore project, SBM said on Monday.

SBM said it had reached an agreement in principle with nearly three quarters of the insurers who provided $500 million of primary cover for the Yme project with a final agreement expected to be wrapped up in the coming weeks.
SBM will receive a cash payment of around $247 million in full and final settlement with these insurers. After legal fees and other expenses have been paid, the proceeds will be shared equally with Repsol in line with a 2013 agreement, the company said.
The group said it continues to pursue its claim against all remaining insurers. The total claim presented by SBM Offshore to its insurers in 2014 in relation to the Yme platform was for $1.28 billion.
"The news is positive because it wipes out a big scar from the past", KBC analyst Tom Simonts said.
SBM built the Yme oil platform for Canadian oil company Talisman Energy and its partners but faced technical difficulties completing the project, which was evacuated in the summer of 2012 due to safety concerns. Talisman was later bought by Repsol.
Simonts also said the focus for SBM now shifts to Brazil, where the company is looking to settle a corruption probe with authorities that has prevented it from bidding for work in a major market.


(Reporting by Manon Jacob and Wout Vergauwen; Editing by Amrutha Gayathri and Adrian Croft)

Jul 17, 2017

 

Deepwater

Transocean Retires Six Floaters

Photo: Transocean

Transocean announced its intent to retire the ultra-deepwater floaters GSF Jack Ryan, Sedco Energy

Marine Environment and Impact of Mine Tailing

Photo: International Maritime Organization (IMO)

The impacts of wastes and other matter in the marine environment from mining operations is at the

BP Restores Power at Thunder Horse Platform after Outage

BP restored power at its Thunder Horse platform in the U.S. Gulf of Mexico, according to a statement to Reuters Wednesday.   The platform lost power due to an electrical outage

Finance

Total Sells Its Italian Gas Business to UGI

French oil and gas major Total has sold its gas business in Italy, Total Italia Gas, a subsidiary of its Italian joint venture TotalErg, to UGI Corp , an industry source said on

Lamprell's Revenue Falls 65 pct, Cuts FY Forecast

File Image (CREDIT: AdobeStock / (c) Nightman)

Oil rig builder Lamprell Plc reported a 64.7 percent fall in revenue in the first half of the year

Hawaii Stevedores Commits Kapalama Container Terminal

© Claude Beaubien / Adobe Stock

Honolulu-based Hawaii Stevedores, Inc. has received confirmation from Hawaii State Department of

Maritime Apps