22 C
Georgetown
Monday, January 25, 2021

SBM Offshore secures US$600 million bridge loan for FPSO Sepetiba

Must Read

Guyana sends note of protest to Venezuelan authorities over detention of fishing vessels

Guyana’s Minister of Foreign Affairs, Hugh Todd, on Monday transferred a protest note to the Venezuelan government over an...

Liza Destiny FPSO among top 5 highest scoring vessels for safety in SBM Offshore’s global fleet

The Liza Destiny Floating Production Storage and Offloading (FPSO) vessel which is producing oil offshore the South American country...

Guyana accounts for US$15 billion in deepwater sanctioning since 2019

Global consultancy group Wood Mackenzie says it expects another year of around US$300 billion in upstream development spend, down...
OilNOW
OilNow is an online-based Information and Resource Centre which serves to complement the work of all stakeholders in the oil and gas sector in Guyana.

SBM Offshore on Wednesday announced the closure of a US$600 million bridge loan facility for the financing of the construction of FPSO Sepetiba, to be deployed in the Santos Basin offshore Brazil.

The facility was secured by the special purpose company owning FPSO Sepetiba and was agreed with a consortium of four international banks. SBM Offshore is majority owner of this special purpose company (with 64.5% equity ownership), together with Mitsubishi Corporation (20%) and Nippon Yusen Kabushiki Kaisha (15.5%).

SBM Offshore said the facility will be drawn in July 2020 to finance the ongoing construction of the FPSO Sepetiba. The tenor of the bridge loan is six months with an extension option for another six months. The facility benefits from sponsor guarantees, which are to be released upon repayment. Repayment is expected to take place upon closure and first drawdown of the project loan which continues to progress. The facility’s weighted average interest margin is in line with the expected margin of SBM Offshore’s existing US$1 billion revolving credit facility for the second half of 2020.

“The successful closure of this bridge facility demonstrates the robustness of our financing model as well as the strength of SBM Offshore’s long-standing relationships with our banks” Bert-Jaap Dijkstra, Group Treasurer of SBM Offshore said.

He pointed out that as the facility is arranged at the level of the special purpose vehicle, it represents a financing tool which enables SBM Offshore and partners to optimize the financing of major projects.

The Group Treasurer further added that this bridge facility improves SBM Offshore’s liquidity position at a competitive rate.

SBM Offshore is the builder and operator of the Liza Destiny FPSO which is currently producing oil at the Stabroek Block some 120 miles offshore Guyana.

Latest News

Guyana sends note of protest to Venezuelan authorities over detention of fishing vessels

Guyana’s Minister of Foreign Affairs, Hugh Todd, on Monday transferred a protest note to the Venezuelan government over an...

Liza Destiny FPSO among top 5 highest scoring vessels for safety in SBM Offshore’s global fleet

The Liza Destiny Floating Production Storage and Offloading (FPSO) vessel which is producing oil offshore the South American country of Guyana is among the...

Guyana accounts for US$15 billion in deepwater sanctioning since 2019

Global consultancy group Wood Mackenzie says it expects another year of around US$300 billion in upstream development spend, down 30% on pre-crisis levels and...

BP delivers first gas cargo to customers in China

British multinational oil and gas company bp said on Monday that it has begun to directly supply gas customers in China with gas from...

Oil and gas supply chain contract awards drop to 16-year low

Oil and gas supply chain companies have seen their profits squeezed since the E&P cost cuts of the previous downturn – and just as...

More Articles Like This