WFW Advises FPSO Joint Venture Debt Financing

Maritime Activity Reports, Inc.

April 8, 2014

International law firm Watson, Farley & Williams Asia Practice LLP (WFW) said it advised a joint venture involving M3nergy and PT Transamudra as sponsors on a $182 million term facility and $38.4 million guarantee facility. The funds will finance the floating production, storage and offloading facility named FPSO Ratu Nusantara.

The FPSO Ratu Nusantara is scheduled for operation by Petronas Carigali in the Bukit Tua oil and gas field in the Ketapang block, offshore Madura Island, East Java, Indonesia.

Partner Andrew Nimmo led the WFW Asia Practice team for this deal, assisted by senior associate Shawn Er.

M3nergy is an emerging exploration and production company headquartered in Malaysia. It is owned by Sabah Development Bank and its strategic focus is on marginal field development, with 15 years of experience in the field. PT Transamudra is an owner and operator of vessels in the offshore oil and gas sector headquartered in Indonesia.

The loan facilities were provided to PT M3 Ketapang Sejahtera, a joint venture entity owned by the sponsors, by a syndicate of lenders consisting of CIMB Bank Berhad Labuan Offshore Branch, Export- Import Bank of Malaysia Berhad, Industrial and Commercial Bank of China (Malaysia) Berhad, National Bank of Abu Dhabi Malaysia Berhad, Natixis Singapore Branch, Oversea-Chinese Banking Corporation Limited and Sumitomo Mitsui Banking Corporation (SMBC). SMBC acted as coordinating bank for the lenders as well as facility agent and security agent.

WFW Asia Practice Partner Andrew Nimmo commented, “We are delighted to achieve a successful completion of this facility for M3nergy and PT Transamudra, representing a landmark first step into the Indonesian market for M3nergy and demonstrating the strong support for the sponsors and this project from their financiers.”

M3nergy Berhad and PT Transamudra Usaha Sejahtera commented, “The journey in concluding this deal was certainly a very enriching experience. For two companies with different backgrounds to come together as one to make things happen, truly makes this a model success story. We see this project as the first of many to come for the sponsors in Indonesia. Of course, we could not have done it without the unrelenting support of Sumitomo Mitsui Banking Corporation, who saw the potential of this project. A special mention also goes to Overseas-Chinese Banking Corporation for their unwavering support over the years. Watson, Farley & Williams Asia Practice has truly been a delight to work with and a relationship we intend to keep. Lastly, the accomplishment of this project could not have been possible without the trust and support of PC Ketapang II Ltd and SKK MIGAS.”

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