SBM Offshore has completed the project financing of floating, production, storage and offloading vessel (FPSO) Cidade de Saquarema for a total of $1.55 billion.
The project financing was completed on July 27, 2015 and the company says it is the largest project financing in its history.
According to SBM Offshore, the project financing was secured by a consortium of sixteen international banks with insurance cover from four Export Credit Agencies (ECA): Atradius Dutch State Business N.V. (Atradius), Nippon Export and Investment Insurance (NEXI), Servizi Assicurativi del Commercio Estero S.p.A. (SACE) and UK Export Finance (UKEF).
Furthermore, SBM Offshore said that the facility is composed of three separate tranches totalling $1.55 billion with a 5.1% weighted average cost of debt and fourteen year post-completion maturity:
– Atradius covered tranche of $800 million including SACE $167 million and UKEF $53 million;
– NEXI covered tranche of $400 million; and
– Uncovered commercial tranche of $350 million.
FPSO Cidade de Saquarema
FPSO Cidade de Saquarema is owned and operated by a joint venture owned by affiliated companies of SBM Offshore (56%), Mitsubishi Corporation (20%), Nippon Yusen Kabushiki Kaisha (19%), and Queiroz Galvão Óleo e Gás S.A. (5%). The vessel has processing capacity of up to 150,000 barrels of crude oil and 6 million cubic meters of gas per day, and storage capacity of approximately 1.6 million barrels of crude oil. The joint venture will own and operate the vessel on a 20-year charter service for Tupi B.V.
Combined with the $1.45 billion project financing of FPSO Cidade de Maricá, the financing of Cidade de Saquarema totals for $3 billion for two FPSOs destined for the Lula field in the pre-salt province offshore Brazil. BM-S-11 block is under concession to a consortium comprised of Petrobras (65%), BG E&P Brasil Ltda. (25%), and Petrogal Brasil S.A. (10%).