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    PGS provides update on Ramform Banff

    Vessel & ROV News // January 15, 2001
    Petroleum Geo-Services ASA says the upgrade of the Ramform Banff Floating Production, Storage & Offloading (FPSO) platform is now almost complete.

    The Ramform Banff was expected to depart the shipyard at which she is being modified by mid-January and be ready for production by the end of January 2001.

    The three to four week delay is primarily related to the need to prepare updated documentation for United Kingdom authorities. In parallel, all five production risers from the Banff field have been removed for inspection, repair and partial replacement.The company says this process is well underway, but there are still some uncertainties that could affect the first oil date.

    The company says it expects that its insurance policy will cover a substantial portion of the costs related to the removal, repair and partial replacement of production risers. In addition to insurance coverage related to physical damage of equipment, the company also maintains a loss of hire policy, which will provide cash flow for a maximum of 90 days during this upgrade.

    Chairman and Chief Executive Officer of Petroleum Geo-Services, Reidar Michaelsen, said, "We are convinced that the work performed on the Ramform Banff will solve the problems that have previously limited production during harsh weather conditions".

    "The delay is not significant to PGS' earnings, especially in light of existing insurance coverage, and in reality the weather conditions during late December and early January would not make for an efficient re-connect in any case. We will continue to keep the market appraised of our progress towards first oil".

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