SBM Offshore closes $465m funding for Mexico-bound FSO
The FSO Chalchi, destined for Woodside's Trion field, secures $465m of project financing from banks and institutional investors.
Dutch floater specialist SBM Offshore has arranged project financing for the FSO Chalchi totalling $465m.
The financing is provided by a consortium of international banks and institutional investors and includes partial insurance cover from China Export & Credit Insurance Corporation. It will be drawn during the construction period and become non-recourse once the FSO starts operations, with loans carrying a maximum tenor of around 14 years post-completion.
FSO Chalchi is currently under construction and will operate under a 20-year lease and operate contract with Woodside Energy, through its affiliate in Mexico. The newbuild is based on a suezmax-type hull and will be fitted with a disconnectable turret mooring system. It will be moored in about 2,500 m of water and able to store around 950,000 barrels of crude oil.
The unit will be deployed at the Trion field, 180 km off the Mexican coast and 30 km south of the US-Mexico maritime border. The Trion project is a joint venture between Woodside and Pemex, which own 60% and 40% respectively.
"We welcome the signing of the project financing of FSO Chalchi, marking our first transaction combining commercial banks, institutional investors and support from an export credit agency. This financing structure demonstrates SBM Offshore's ability to deliver innovative, long-term funding solutions for our clients and provides a scalable solution for potential new lease and operate projects," said Douglas Wood, CFO of SBM Offshore.
