Tuesday, September 27, 2022

SBM Offshore completes US$1.75 billion financing for Guyana’s biggest floater

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Builder of Guyana’s floating production, storage and offloading (FPSO) vessels, SBM Offshore, announced Thursday that it completed project financing for the ONE GUYANA vessel to be used for the Yellowtail project.

The FPSO project costs US$1.75 billion; SBM Offshore said this was secured by a consortium of 15 international banks through a loan it expects to draw down in a phased manner over the construction period.

“The financing will become non-recourse once the FPSO is completed and the pre-completion guarantee has been released,” SBM Offshore said. “The project loan is in line with the duration of the charter hence a two-year tenor post-completion and carries a variable interest rate based on [secured overnight financing rate] SOFR plus 2.2% margin.”

The company indicated the ONE GUYANA builds on experience to date with the three prior vessels – Liza Destiny, Liza Unity and Prosperity. In this regard, its design falls under SBMOffshore’s Fast4Ward® program that incorporates the Company’s new build, multi-purpose hull combined with several standardised topsides modules.

The FPSO will be designed to produce approximately 250,000 barrels of oil per day, will have associated gas treatment capacity of 450 million cubic feet per day and water injection capacity of 300,000 barrels per day. The FPSO will be spread moored in water depth of about 1,800 meters and will be able to store around 2 million barrels of crude oil.

The hull for this FPSO is in Indonesian waters awaiting the conclusion of the Prosperity FPSO in Singapore, according to President and Chief Operating Officer of Hess Corporation, Greg Hill.

It is part of the US$10 billion Yellowtail project, that will represent the largest singular investment in Guyana’s history. Yellowtail is the fourth development, to be situated circa 200 kilometers offshore Guyana. Added to the preceding Stabroek Block projects, Yellowtail will lift production capacity to over 800,000 barrels per day by 2025, making it the world’s largest per capita oil producer.

The Stabroek Block is being operated via a 45% stake by ExxonMobil affiliate, Esso Exploration and Production Guyana Limited (EEPGL). Hess Guyana Exploration Ltd. holds a 30% interest and CNOOC Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds a 25% interest.

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