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Friday, December 4, 2020

SBM Offshore completes US$720M Liza Destiny financing

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SBM Offshore said on Wednesday that on December 19, 2017 it completed the project financing of FPSO Liza Destiny for a total of US$720M.

The project financing was secured by a consortium of twelve international banks. The Company expects to draw the loan in full, phased over the construction period of the FPSO.

The financing will become non-recourse once the FPSO is completed and the pre-completion guarantees have been released. The post completion project loan has a tenor of ten years, with a variable interest cost of LIBOR plus 1.65%.

FPSO Liza is owned and will be operated by SBM Offshore. The lease and operate contract includes an initial period of ten years with extension options up to an additional ten years.

The FPSO is designed to produce up to 120,000 barrels of oil per day, will have associated gas treatment capacity of circa 170 million cubic feet per day and water injection capacity of circa 200,000 barrels per day. The converted Very Large Crude Carrier (VLCC) FPSO will be spread moored at the Liza field located in the Stabroek block circa 200 kilometers offshore Guyana, in water depth of 1,525 meters and will be able to store 1.6 million barrels of crude oil.

ExxonMobil affiliate Esso Exploration and Production Guyana Limited is the operator and holds a 45 percent interest in the Stabroek block. Hess Guyana Exploration Ltd. holds a 30 percent interest, and CNOOC Nexen Petroleum Guyana Limited holds a 25 percent interest.

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