Netherlands-based SBM Offshore has completed a US$1.6 billion project financing for its floating production storage and offloading unit, FPSO Sepetiba, which will be deployed in Brazil's Santos Basin.
The project financing was provided by a consortium of 13 international banks with insurance cover from export credit agencies Nippon Export and Investment Insurance (NEXI) and SACE of Italy.
In addition, a letter of intent was received from China Export & Credit Insurance Corporation (Sinosure), which intends to join this transaction by the end of the year and will replace a portion of the commercial banks’ commitments.
The FPSO will be deployed in an offshore oilfield in which China National Offshore Oil Corporation (CNOOC) and CNODC are participants. China National Petroleum Corporation (CNPC), the parent company of PetroChina, develops overseas assets through a joint venture, CNPC Exploration & Development Company (CNODC), which is 50% owned by PetroChina.
Production sharing
The facility is composed of four separate tranches with a weighted average cost of 4.3%, a 14-year post-completion maturity for the ECA-covered tranches, and a 15-year post-completion maturity on the uncovered tranches.
FPSO Sepetiba will be deployed at the Mero field in the Santos Basin, 180 kilometres off Rio de Janeiro. The Libra block, where the Mero field is located, is under a production sharing agreement with a consortium comprised of Petrobras as operator (40%), Shell Brasil (20%), TotalEnergies (20%), CNODC (10%) and CNOOC (10%). The consortium also has the participation of state-owned Pre-Sal Petroleo SA (PPSA), as manager of the production sharing contract.
FPSO Sepetiba is owned and operated by a special purpose company owned by affiliated companies of SBM Offshore (64.5%) and its partners (35.5%).
The vessel has a processing capacity of up to 180,000 barrels of oil per day, a water injection capacity of 250,000 barrels per day, associated gas treatment capacity of 12 million standard cubic metres per day, and a minimum storage capacity of 1.4 million barrels of crude oil. The FPSO will be moored in a water depth of approximately 2,000 metres.
Almirante Tamandare
SBM Offshore is now putting financing in place for its next FPSO, the Almirante Tamandare.
In July SBM Offshore signed contracts with Petrobras for a 26.25-year lease and operation of the platform, which will be deployed at the Buzios field in the Santos Basin.
On September 23, SBM Offshore announced that it has secured a US$635 million bridge loan facility for the financing of the construction of the FPSO.
The facility was secured by the special purpose company which will own FPSO Almirante Tamandare. Currently, SBM Offshore is the sole owner of this special purpose company. Discussions around the divestment of 45% of the equity ownership to partners are in progress.
The facility will finance the ongoing construction of the FPSO Almirante Tamandare, which will be the largest oil producing unit operating offshore Brazil, and one of the largest in the world, with daily processing capacity of 225,000 barrels of oil and 12 million cubic metres of gas. Delivery is expected in the second half of 2024.
