CALGARY—Talisman Energy said it has signed a deal with SBM Offshore to cancel and scrap its Yme project in the North Sea, which has faced a number of problems and delays.
The company said a new solution is needed in order to develop the Yme field.
Talisman said the project’s first mobile offshore production unit will be removed and scrapped, while the undersea structure will be transferred from SBM to the Yme licence holders.
The deal will see SBM make an upfront payment of $470-million while Talisman completes the work to remove the mobile production unit from the Yme field.
SBM will manage the transportation and ultimate scrapping of the facility.