Malaysian floater specialist, Yinson Production, has successfully secured a US$230 million loan to support the construction of a floating production, storage, and offloading vessel (FPSO) designated for the Jubarte field offshore Brazil. The financial deal was facilitated by infrastructure fund manager Global Infrastructure Partners (GIP).
The FPSO is intended to serve the Parque das Baleias Integrated Project offshore Brazil, and its construction has reached nearly 70% completion as of June 2023, aligning with the established project schedule. The vessel is targeting first oil production in the latter half of 2024.
The deal represents Yinson Production’s maiden transaction with GIP, while also marking GIP’s first-ever financing involvement in an FPSO vessel. A consortium of investors, including Gramercy Funds Management, joined GIP in the funding of this substantial loan facility.
Yinson Production emphasized the growth prospects of the FPSO industry within the global energy infrastructure market, indicating that this transaction underscores the sector’s attractive investment landscape.
Jon Plavnick, Managing Director of GIP Credit, expressed his pride in the partnership, stating, “This transaction highlights GIP Credit’s ability to provide a reliable and flexible capital solution for FPSO Maria Quiteria during both its conversion process in Shanghai and its eventual time charter operations in Brazil.”
The venture received a significant boost in February of the previous year when Brazilian state-owned energy company Petrobras awarded Yinson Production the contract to supply, operate, and maintain the FPSO Maria Quiteria.
Yinson’s Chief Financial Officer, Markus Wenker, lauded the company’s accomplishment, highlighting its ability to attract sophisticated capital and expand its funding sources beyond Asia. Wenker expressed enthusiasm for future growth opportunities within the FPSO market, affirming Yinson Production’s commitment to creating value for shareholders and establishing a global network of lenders and investors.