Sevan Marine (Sevan), on behalf of its wholly owned subsidiaries, and E.ON Ruhrgas UK E&P, as operator on behalf of the Huntington owners, have entered into a Letter of Intent (LOI) in which they have agreed to progress negotiations on a charter party for the potential use of the FPSO Sevan Voyageur as the production unit for the Huntington field in block 22/14 of the UK continental shelf.

These negotiations will be on a mutually exclusive basis for the period until June 30, 2010. There are certain technical and financing conditions that need to be satisfied during this period, the company said.

The proposed charter party will be for a firm fixed term of five years with extension options for the Huntington owners. The estimated contract value would be $535m for the fixed term.

Jan Tveteraas, CEO of Sevan Marine, said: “We are pleased with this announcement which demonstrates the attractiveness and flexibility of the Sevan platform in the technically challenging segments of the offshore market.”

The Huntington owners are E.ON Ruhrgas UK E&P (25% and operator); Premier Oil (40%); Noreco (Norwegian Energy Company) (20%); and Carrizo Oil & Gas (15%).

Sevan Marine is engaged in owning, operating and licensing FPSOs and drilling units, based on its patented cylindrical floater technology.