Sevan Marine Agrees FPSO Piranema ANP Fine Settlement

Sevan Marine ASA has agreed a settlement with Piranema LLC in relation to ANP fines incurred to date. As previously communicated Sevan Marine provided Piranema LLC with an indemnity against such fines in conjunction with the 2011 restructuring and sale of the FPSO Piranema.

Sevan Marine will pay Piranema LLC an amount of USD 3 million to settle the fines and related expenses incurred to date. Sevan Marine will remain liable for any future claims. Neither Sevan Marine nor Piranema LLC are aware of any pending or future claims at this time.

Sevan Marine has accounted for and accrued for such costs in its financial accounts with USD 3.7 million. The settlement will lead to a USD 3 million reduction in Sevan Marine’s cash balance per the end of Q1 2017 and an accounting financial gain in the range of USD 0.7 million in the quarter.