SBM Offshore Awarded Contracts By Shell Offshore

(RTTNews) - SBM Offshore (SBFFY.PK) said Monday it has signed contracts with Shell Offshore Inc. to supply and lease an Floating Production Storage and Offloading (FPSO) for the Stones development project in the Gulf of Mexico. The contracts include an initial period of 10 years with future extension options up to a total of 20 years.

The Stones development is located in 2,896m of water about 200 miles offshore Louisiana in the Walker Ridge area. When installed, the Stones FPSO will be the deepest FPSO development in the world.

The FPSO is a typical generation 2 design with a processing facility capacity of 60,000 barrels of oil per day (bopd) and 15 mmscfd of gas treatment and export. The Suezmax hull will be able to store 800,000 barrels of crude oil and total topsides weight will reach 7 thousand tons.

In March 2012, Shell and SBM Offshore signed an Enterprise Framework Agreement (EFA) for the supply of medium and small FPSOs on a lease and operate basis. The Stones FPSO is the first Shell project to award contracts utilizing the EFA. Execution work has already commenced in SBM Offshore's Houston Execution Center with early procurement and commitments underway.

The total asset value of the FPSO is about $1 billion.

SBM Offshore N.V. is a listed holding company that is headquartered in Schiedam. It holds direct and indirect interests in other companies that collectively with SBM Offshore N.V. form the SBM Offshore group.