SBM Offshore is pleased to announce that on July 27, 2015 it completed the project financing of FPSO Cidade de Saquarema for a total of US$1.55 billion, which is the largest project financing in the company’s history.
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).
The facility is composed of three separate tranches totalling US$1.55 billion with a 5.1% weighted average cost of debt and fourteen year post-completion maturity:
Atradius covered tranche of US$800 million including SACE US$167 million and UKEF US$53 million
NEXI covered tranche of US$400 million
Uncovered commercial tranche of US$350 million
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 US$1.45 billion project financing of FPSO Cidade de Maricá (July 2014), today’s announcement culminates the successful financing of US$3 billion for two sister units 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%).
Edited from various sources by Louise Mulhall