SBM Offshore secures financing for Cidade de Saquarema

SBM Offshore has finalized project financing of FPSO Cidade de Saquarema for a total of $1.55 billion

Offshore staff

MONACOSBM Offshore has finalized project financing of FPSO Cidade de Saquarema 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: Atradius Dutch State Business, Nippon Export and Investment Insurance, Servizi Assicurativi del Commercio Estero, and UK Export.

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.

FPSOCidade de Saquarema is owned and operated by a joint venture owned by affiliated companies of SBM Offshore (56%), Mitsubishi Corp. (20%), Nippon Yusen Kabushiki Kaisha (19%), and Queiroz Galvão Óleo e Gás (5%). The vessel has processing capacity of up to 150,000 b/d of oil and 6 MMcm/d of gas, and storage capacity of approximately 1.6 MMbbl. 

The joint venture will own and operate the vessel on a 20-year charter service for Tupi.

Combined with the $1.45 billion project financing ofFPSOCidade de Maricá (July 2014), today's announcement culminates the successful financing of $3 billion for two sister units destined for the Lula field in the presalt region offshore Brazil.  

BM-S-11 block is under concession to a consortium comprised ofPetrobras (65%), BG E&P Brasil Ltda. (25%), and Petrogal Brasil S.A. (10%).

07/27/2015

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