SBM Offshore announces it has signed two Share Purchase Agreements with its partner MISC Berhad for the total acquisition of MISC Berhad’s entire effective equity interest in the lease and operating entities related to the FPSO Espirito Santo in Brazil and the full divestment to MISC Berhad of SBM Offshore’s effective equity interest in the lease and operating entities of the FPSO Kikeh in Malaysia.
SBM Offshore stated that this transaction furthers SBM Offshore’s efforts to maintain focus and excellence in its operating portfolio. Agreements remain subject to several conditions precedent and approval by various competent authorities.
Under the agreement signed by the parties, SBM Offshore will acquire all of MISC’s beneficial interest in the leasing and operating entities associated with the FPSO Espirito Santo. The FPSO is being deployed in the BC 10 field in water depths of up to 1,789 meters in the Campos Basin in the Vitoria Sea, Brazil, for Shell subsidiary Shell do Brasil.
The FPSO Espirito Santo was converted from a 1975-built Very Large Crude Carrier (VLCC), classed by American Bureau of Shipping (ABS), and completed in 2009 with a deadweight of 268,865 tons. The FPSO has a capacity of 100,000 barrels of oil per day, 75,000 barrels of water injection per day, 50 MMscfd of gas per day, 2 million barrels of oil storage capacity and 30 MMScfd of gas lift capacity.
In addition, SBM Offshore plans to divest the entire effective equity interest in the leasing and operating entities associated with the FPSO Kikeh, which is deployed in the Kikeh deepwater field in water depths of 1,350 meters in Block K in the Sabah Sea, Malaysia, to provide services to Murphy Sabah Oil, to MISC.
FPSO Kikeh was converted from a VLCC built in 1974 and completed in 2007 with a deadweight of 273,409 tons. Kikeh has a capacity of 120,000 barrels of oil per day, a water injection capacity of 260,000 barrels of water per day, a gas production capacity of 150 MMscfd per day, an oil storage capacity of 2 million barrels.