Sunday, June 26, 2022

Dutch ship builder completes US$1.05 billion financing for Prosperity FPSO

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SBM Offshore, a leading Dutch company specialising in the construction of floating production and mooring vessels or systems, on Friday announced that it has completed the project financing for the Prosperity floating production, storage and offloading (FPSO) vessel which totals US$1.05 billion. This FPSO will be placed in the Payara project area for the third oil development offshore Guyana. It is located some 200 kilometres offshore the South American country.

SBM Offshore, which has so far constructed two FPSOs for projects at the ExxonMobil-operated Stabroek Block, indicated today that the project financing was secured by a consortium of 11 international banks. Further to this, the company added that it expects to draw the loan in full, phased over the construction period of the FPSO.

The Dutch floater specialist further added that the financing will become non-recourse once the FPSO is completed, and the pre-completion guarantee has been released. It also stated that the project loan has a tenor of two years post-completion, in line with the duration of the charter, and carries a variable interest rate plus 1.60%.

“The Prosperity FPSO,” SBM offshore explained, “will utilize a design that largely replicates the design of the Liza Unity FPSO. As such, the design is based on SBM Offshore’s industry leading Fast4Ward program that incorporates the Company’s new build, multi-purpose hull combined with several standardised topsides modules.”

This FPSO will be designed to produce 220,000 barrels of oil per day, will have an associated gas treatment capacity of 400 million cubic feet per day and water injection capacity of 250,000 barrels per day. The vessel will be spread moored in a water depth of about 1,900 meters and will be able to store around 2 million barrels of crude oil.

At the Payara site, preliminary activities for the project are underway. The project was approved in September last year, following an extensive period of review under two administrations. The operationalisation of this project, set for 2024, is expected to take oil production offshore Guyana, well over 500,000 barrels of oil per day, with increases in production for all vessels being planned.

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