Oceanteam ASA and its subsidiaries ('Oceanteam' or 'the Company') have on 14 April 2009 entered into a contract transfer agreement with ABB High Voltage AB ('ABB') on the offshore power cable installation projects named BritNed, StatoilHydro Gjøa and Nord Eon 1 (the 'Projects'). In addition and as a result the long term co-operation agreement between ABB and Oceanteam has been terminated.
ABB and Oceanteam have agreed that the 'Projects' will be taken over by Global Marine System Ltd and that Oceanteam will be released with immediate effect from all its associated obligations under the 'Contracts'. 'ABB' and Oceanteam have agreed on mutual hold harmless waivers for the Contracts.
The transfer agreement includes that ABB and Global Marine Systems Ltd will charter the CSV North Ocean 102 and CLV Team Oman as spreads which include certain related personnel, equipment and support services from the Company as from 12 April 2009 and until the projects are completed, estimated in Q4 2009.
The transfer termination agreements will exclude utilisation of the CLB Explorer, the Heavy Duty Plough and certain related equipment. The equipment is currently available in New Castle, UK, and Oceanteam is in dialogue with various parties to charter out the equipment.
The parties have agreed to keep the terms of the agreement confidential.
Due to the transfer of the Projects and the termination of the long term co-operation agreement, Oceanteam will reduce its activities. The operational risk of the Company will be reduced, but Oceanteam will accordingly generate less revenues and incur large restructuring costs in 2009. The impact of the agreement on the Company 2009 work schedule is significant. The reduced utilisation of the CLB Explorer -, related equipment -, personnel will affect the financial results of the Company.