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SBM settles with majority of primary carriers over Yme loss

July 17, 2017

Dutch-based offshore energy specialist SBM Offshore has reached a settlement with 73.6 percent of the insurers who provided $500mn of primary cover for the Yme project.

In a statement, SBM said that it will receive a cash payment of around $247mn in full and final settlement with these insurers. After legal fees and other expenses have been paid, the company said that the proceeds will be shared equally with oil producer Repsol, in line with a 2013 agreement.

The final agreement, which remains subject to contract, is expected to be formalised in the coming weeks, SBM noted.

However, SBM said that it continues to pursue its claim against all remaining insurers, including those on the two excess layers, with the trial scheduled to commence in October 2018.

SBM built the Yme oil platform for Canadian oil company Talisman Energy and its partners but faced technical difficulties completing the project, which was evacuated in the summer of 2012 due to safety concerns. Talisman was later bought by Repsol.