Sevan Receives LOI from Oilexco for Sevan No. 3

Oilexco has entered into a letter of intent with Sevan Marine for the use of the Sevan no. 3 production unit, which is currently under construction at the Yantai Raffles Shipyard. The Sevan #3 is intended to be installed on the Shelley field in the central UK North Sea in 2008.

The fixed term of the contract is five years, with extension options for an additional five years. The contract value for the fixed term is approximately US $370 million. The parties will agree on the final specification of the processing plant, but it is anticipated that plant will have an oil process capacity of 30,000 barrels/day and a water injection capacity of 20,000 barrels/day.

The Sevan #3 is the fourth floating production unit to be contracted, all of which are based on the Sevan 300 design. Three of these units will be based in the UK North Sea, while one will be operating in Brazil. Previously, Sevan has also contracted one drilling unit, based on the Sevan 650 design, for use in the US Gulf of Mexico.

We are pleased to announce this agreement, which demonstrates the attractiveness of the Sevan platform in the technologically challenging segments of the offshore market. We have now all our five units contracted. The three units in the North Sea will provide a basis for an efficient operation, says Jan Erik Tveteraas, CEO of Sevan Marine ASA.