SBM Offshore announced it has today completed the project financing of FPSO Cidade de Saquarema for a total of $1.55 billion, marking 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 Stat
e 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 totaling $1.55 billion with a 5.1 percent weighted average cost of debt and fourteen year post-completion maturity: Atradius covered tranche of $800 million including SACE $167 million and UKEF $53 million; NEXI covered tranche of $400 million; and uncovered commercial tranche of $350 million.
FPSO Cidade de Saquarema is owned and operated by a joint venture owned by affiliated companies of SBM Offshore (56 percent), Mitsubishi Corporation (20 percent), Nippon Yusen Kabushiki Kaisha (19 percent), and Queiroz Galvão Óleo e Gás S.A. (5 percent). The vessel has processing capacity of up to 150,000 barrels of crude oil and 6 million cubic meters of gas per day, and storage capacity of approximately 1.6 million barrels of crude oil. The joint venture will own and operate the vessel on a 20-year charter service for Tupi B.V.
Combined with the $1.45 billion project financing of FPSO Cidade de Maricá in July 2014, today's announcement culminates the successful financing of $3 billion for two 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 (65 percent), BG E&P Brasil Ltda. (25 percent), and Petrogal Brasil S.A. (10 percent).