BW Offshore's Press December Press Release:(Bermuda, 19 December...

BW Offshore's Press December Press Release:

(Bermuda, 19 December 2008): Anzon, on behalf of the participants in the BMG Project, has given notice to BW Offshore of a termination of the Letter of Intent ("LoI") signed in July 2008 for the supply of a FPSO for the proposed BMG Phase-2 Project. BW Offshore will act according to the conditions under the LoI related to a termination with the purpose of receiving recovery of the costs already occurred in the project."

Source:
http://cws.huginonline.com/B/136844/PR/200812/1278768_5.html

Extract from BW Onshore's 4th quarter Report:

"On 19 December 2008, Anzon, on behalf of the participants in the BMG Project, gave notice to BW Offshore of a termination of the Letter of Intent (LoI) signed in July 2008 for the supply of a FPSO for the proposed BMG Project. BW Offshore will act according to the conditions under the LoI related to termination seek recovery of the costs already incurred in the project, however all project cost have been expensed in the financial statements of BW Offshore. The Company believes that part of these impairment charges and write-offs will be recoverable going forward."

"the Company has provided for the project costs related to the BMG project. The Company cannot recognize the claimed reimbursement from the BMG partners as the outcome of this claim is not deemed “virtually certain” according to IAS 37."
....................Q4 2008
Expensed BMG project 88.8



Source:
http://hugin.info/136844/R/1291008/291467.pdf


Regards

SP