(SBM Offshore N.V., 28.Jul.2015) – SBM Offshore N.V. announced that on 27.Jul.2015 it completed the project financing of FPSO Cidade de Saquarema — which will be deployed to the Lula field offshore Brazil upon completion — for a total of $1.55 billion, which is the largest project financing in the company’s history.
Project financing was secured by a consortium of 16 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 $1.55 bln with a 5.1% weighted average cost of debt and 14-year post-completion maturity:
— Atradius covered tranche of $800 mln including SACE $167 mln and UKEF $53 mln
— NEXI covered tranche of $400 mln
— Uncovered commercial tranche of $350 mln
FPSO Cidade de Saquarema is owned and operated by a JV owned by affiliated companies of SBM Offshore (WI 56%), Mitsubishi Corporation (WI 20%), Nippon Yusen Kabushiki Kaisha (WI 19%), and Queiroz Galvao Oleo e Gas S.A. (WI 5%). The vessel has processing capacity of up to 150 Mb/d of oil and 211.86 MMcf/d (6 MMcm/d) of gas, and storage capacity of approximately 1.6 MMbbls of crude oil. The JV will own and operate the vessel on a 20-year charter service for Tupi B.V.
Combined with the $1.45 bln project financing of FPSO Cidade de Marica (Jul.2014), this announcement culminates the successful financing of $3 bln for 2 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 (WI 65%), BG E&P Brasil Ltda. (WI 25%), and Petrogal Brasil S.A. (WI 10%).
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