Brazilian FPSO financing secured

Offshore technology company Sevan Marine ASA has reported that its subsidiary Sevan Production AS has secured $120 million in financing for its first FPSO.

Offshore staff

(Brazil)-Offshore technology company Sevan Marine ASA has reported that its subsidiary Sevan Production AS has secured $120 million in financing for its first FPSO.

The vesselSSP Piranema will be deployed offshore Brazil under an 11-yr charter with Petrobras.

The FPSO is a cylindrical-shaped vessel designed for all sea environments and will produce light crude. It has the capacity to process 30,000 b/d of oil and store 300,000 bbl. TheSSP Piranema also possesses a gas injection plant with compression capacity of 3.6 MMcm/d of gas.

The vessel is under construction at the Yantai Raffles shipyard in China and is scheduled for completion in mid 2006. It will then be deployed to the Piranema field in water depths ranging from 1,000 to 1,600 m.

The financing transaction, originated and carried out by three GE financial business units, is a limited recourse financing containing a pre-completion construction financing that converts into a 10-yr amortizing term loan following delivery of the FPSO to Petrobras.

Alex Urquhart, president and CEO of GE Energy Financial Services, said of the financing arrangement, "This transaction demonstrates our growth in oil and gas and takes advantage of the wide range of GE's industry-focused financing businesses."

12/14/2005

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