Talisman Energy Announces Financial Settlement on Yme Project
CALGARY, ALBERTA -- (Marketwire) -- 03/12/13 -- Talisman Energy Norge
AS (Talisman), (TSX:TLM) (NYSE:TLM) on behalf of its joint venture
partners, has reached an agreement with SBM Offshore to terminate the
YME MOPUstor(TM) project, including scrapping the existing
above-surface structure, and ending all joint activity for an agreed
"This is a good settlement for Talisman, the Yme partners and
Norway," said Paul Warwick, Executive Vice-President,
Europe-Atlantic. "This arrangement should allow the partners to move
forward to examine options for the Yme field, without incurring
significant additional costs related to the existing topsides. Recent
analysis has concluded that a new topsides solution is needed in
order to develop the Yme field. Our first priority will be to remove
the existing platform, safely and expeditiously."
Following an extended period of operational and execution delays, the
decision has been taken to have Talisman remove the MOPU (Mobile
Offshore Production Unit), which will subsequently be scrapped by SBM
Offshore, the unit's owner. Ownership of the in situ subsea structure
will be transferred from SBM Offshore to the Yme license holders, as
they assess alternative development concepts for the field.
Subject to an upfront settlement payment of US$470 million made by
SBM Offshore, Talisman will complete the work necessary to ensure
safe re-manning and will then remove the MOPU from the Yme field. SBM
Offshore will manage the transportation and ultimate scrapping of the
All parties will terminate the existing agreements and arbitration
procedures with respect to the Yme project.
Talisman Energy Inc. is a global upstream oil and gas company,
headquartered in Canada. Talisman has two core operating areas: the
Americas (North America and Colombia) and Asia-Pacific. Talisman is
committed to conducting business safely, in a socially and
environmentally responsible manner, and is included in the Dow Jones
Sustainability (North America) Index. Talisman is listed on the
Toronto and New York stock exchanges under the symbol TLM. Please
visit our website at (www.talisman-energy.com).
This news release contains information that constitutes
"forward-looking information" or "forward-looking statements"
(collectively "FLI") within the meaning of applicable securities
legislation. This FLI includes, among others, statements regarding:
business priorities and plans; expected settlement payment; expected
completion of the work necessary to ensure the safe remanning and
removal of the MOPU; expected scrapping of the existing platform; and
other expectations, beliefs, plans, goals, objectives, assumptions,
information and statements about possible future events. The factors
or assumptions on which the FLI is based include assumptions inherent
in current guidance and other risks and uncertainties described in
the filings made by the Company with securities regulatory
authorities. The Company believes the material factors, expectations
and assumptions reflected in the FLI are reasonable but no assurance
can be given that they will prove to be correct. Undue reliance
should not be placed on FLI. FLI is based on current expectations,
estimates and projections that involve a number of risks which could
cause actual results to vary and in some instances to differ
materially from those anticipated by Talisman and described in this
news release. The material risk factors include, but are not limited
to: risks associated with project management, project delays and/or
cost overruns; the uncertainty of estimates and projections relating
to production, costs and expenses, including decommissioning
liabilities; risks related to strategic and capital allocation
decisions; changes in general economic and business conditions; and
the possibility that government policies, regulations or laws may
change or governmental approvals may be delayed or withheld. The
foregoing list of risk factors is not exhaustive. Additional
information on these and other factors are included in Talisman's
most recent AIF. In addition, information is available in the
Company's other reports on file with Canadian securities regulatory
authorities and the US SEC. FLI is based on the estimates and
opinions of the Company's management at the time the information is
presented. The Company assumes no obligation to update FLI should
circumstances or management's estimates or opinions change, except as
required by law.
Talisman Energy Norge AS (TENAS) is a subsidiary of Talisman Energy
Inc. Unless the context indicates otherwise, references to "Talisman"
include the direct or indirect subsidiaries of Talisman Energy Inc.
Such use of "Talisman" to refer to these other legal entities does
not constitute a waiver by Talisman Energy Inc. or TENAS of their
separate legal status, for any purpose.
Talisman Energy Inc. - Media and General Inquiries
Manager, External Communications
Talisman Energy Inc. - Shareholder and Investor Inquiries
Vice-President, Investor Relations
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