SBM Offshore Gets Letter Of Intent For FPSO From Eni

AMSTERDAM -(Dow Jones)- SBM Offshore NV (SBMO.AE) said Friday that on behalf of its Joint Venture companies with Sonangol it has received a Letter of Intent (LOI) for twelve year lease and operate contracts from ENI Angola SpA for the block 15/06 development,offshore Angola.

MAIN FACTS:

– The development plan involves relocation of the existing FPSO Xikomba, which has been operating under contract for ExxonMobil in Angola since 2003.

– Following the notice of termination of the current contract by ExxonMobil the unit is scheduled to stop operation in the first half of 2011.

– The unit will undergo a major upgrade in order to meet the new project specific requirements. Part of that work will be performed in the PAENAL yard in Angola.

– The LOI covers the early phase of the project and allows SBM Offshore to commence engineering and procurement work.

– The full scope lease and operate contracts are expected to be signed in the coming months.

-By Amsterdam Bureau, Dow Jones Newswires