Netherlands-based SBM Offshore, a provider of the design, construction, installation, and operation of offshore floating facilities, has secured multimillion-dollar financing for a newbuild floating storage and offloading (FSO) unit, which will be deployed at a deepwater oil project off the coast of Mexico, North America.
SBM Offshore has signed the project financing for the FSO Chalchi for a total amount of $465 million with a consortium of international banks and institutional investors. This includes partial insurance cover from China Export & Credit Insurance Corporation.
The Dutch giant emphasizes that the project financing will be drawn during the construction period and will become non-recourse after the FSO has started operations. The loans have a maximum tenor of around 14 years post-completion.
Douglas Wood , CFO of SBM Offshore, commented: “We welcome the signing of the project financing of FSO Chalchi, marking our first transaction combining commercial banks, institutional investors and support from an export credit agency.
“This financing structure demonstrates SBM Offshore’s ability to deliver innovative, long-term funding solutions for our clients and provides a scalable solution for potential new lease and operate projects.”
The FSO Chalchi, which is currently under construction , will be operated under 20-year lease and operate contracts with Woodside Energy through its affiliate in Mexico. The new-build FSO is based on a Suezmax-type hull.
This unit will be equipped with a disconnectable turret mooring system designed by SBM Offshore. The FSO will be moored in a water depth of about 2,500 meters and will be able to store around 950,000 barrels of crude oil.
The FSO Chalchi will be deployed at the Trion field , located 180 kilometers off the Mexican coastline and 30 kilometers south of the U.S./Mexico maritime border. This project is a joint venture between Woodside (60%, operator) and Pemex (40%).