Sevan addresses Brazil platform process issues

Offshore staff

ARENDAL, Norway -- Sevan Marine is facing cost increases associated with construction programs on two FPSOs.

During the first quarter of this year, commercial uptime for the FPSO Sevan Piranema, operating off Brazil, was restricted to 88% due to continuing problems with the gas cooling and booster compressor systems. Sevan is considering additional investments of $25 million in the platform’s process equipment to improve the performance.

In contrast, the FPSO Sevan Hummingbird had a commercial uptime of 105% on the Chestnut field in the UK North Sea, with a bonus achieved for high production levels. In the same sector, the FPSO Sevan Voyageur is being upgraded to prepare for service on the Huntington field under a five-year fixed-term contract with extension options for E.ON Ruhrgas.

Following a review of the program, the anticipated project cost has risen from $90 million to $135 million, including contingencies and start-up costs. The increase is mainly due to the need for additional steel and engineering. Delivery from the yard is scheduled for year-end, followed by first oil in 1Q 2012.

05/23/2011



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