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Kommandor LLC
12 Months Ended
Dec. 31, 2013
Kommandor LLC [Abstract]  
Kommandor LLC

Note 6 — Kommandor LLC

 

In October 2006, we partnered with Kommandor RØMØ, a Danish corporation, to form Kommandor LLC, a Delaware limited liability company, the purpose of which was to convert a ferry vessel into a ship-shaped dynamically-positioned floating production unit vessel.  Upon completion of the conversion in April 2009, the vessel, (the HP I) was leased to us under a bareboat charter.  We subsequently installed topside oil and gas processing equipment, at 100% our cost, that allows the HP I to serve as a floating production system.  The HP I will primarily service fields in the Deepwater of the Gulf of Mexico.  In June 2010, the HP I was certified for use as a floating production unit by the U.S. Coast Guard.  The HP I initially participated in the Macondo well control and containment efforts.  Subsequently, the HP I mobilized to the Phoenix field where production commenced in October 2010.  The HP I is under contract with ERT to service the Phoenix field through at least December 31, 2016.

 

The total cost of the conversion of the vessel was $148.7 million.  The total cost of us to install the topside oil and gas processing facilities was $196.2 million.

 

We have recently reached agreement with Kommandor RØMØ to acquire its noncontrolling interests in Kommandor LLC for $20.1 million.

 

The consolidated results of Kommandor LLC are included in our Production Facilities segment.  We owned approximately 81% of Kommandor LLC at December 31, 2013.