Voyageur upgrade costs rise by 50%

Offshore staff

ARENDAL, Norway – Upgrade work on the FPSO Sevan Voyageur continues at the Nymo yard in Arendal, according to contractor Sevan Marine.

The program involves modification of existing process facilities to handle more gas; installation of two gas compression trains for gas export and gas lift; and an increase in the water injection system. Sevan Voyageur is contracted for E.ON Ruhrgas’ Huntington field development in the UK central North Sea.

During 2 Q2011, Sevan says the total upgrade cost likely has risen from $90 million to $135 million, mainly due to additional steel and engineering requirements.

Sevan’s board is taking measures to secure the project execution, and expects to deliver the vessel from the yard at the end of 2011. First oil from Huntington is scheduled for 1Q 2012.

Among Sevan’s other current construction programs, the hulls for FPSO Sevan 300 no. 4 and 5 has been relocated to Cosco’s Nantong Shipyard in China. The company aims to complete construction of these units at Cosco after it has secured contracts with clients.

But Sevan’s working capital is at present insufficient to support its requirements, and the company says it needs to resolve its financial situation. Therefore, it is seeking to negotiate a debt restructuring, potentially in combination with a share issue and a reduction of overhead cost.

06/15/2011



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