Posted on July 25, 2022
Dutch floater specialist SBM Offshore has completed a $1.75bn project financing of One Guyana floating production storage and offloading (FPSO) vessel set for ExxonMobil’s Yellowtail development located in the Stabroek block offshore Guyana.
The project financing was secured by a consortium of 15 international banks and SBM Offshore said it expects to draw the loan in full, phased over the construction period of the FPSO.
Under contracts with Exxon, SBM Offshore will build, install and then lease and operate the vessel for a period of up to two years, after which the ownership and operation will transfer to EEPGL.
“The financing will become non-recourse once the FPSO is completed and the pre-completion guarantee has been released. 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 SOFR plus 2.2% margin,” SBM explained.
The FPSO is the fourth unit SBM will deliver in Guyanese waters. The vessel will be designed to produce 250,000 bopd, will have an associated gas treatment capacity of 450m cfpd and a water injection capacity of 300,000 bpd. It will be spread moored at a water depth of about 1,800 m and will be able to store around 2m barrels of crude oil. The turnkey phase of the project is executed by a special purpose company (SPC) established by SBM Offshore and McDermott. SBM Offshore holds 70% and McDermott holds 30% equity ownership in this SPC.
The Yellowtail development is the fourth development within the Stabroek block, some 200 km offshore Guyana. Esso Exploration and Production Guyana Limited (EEPGL), an affiliate of ExxonMobil, is the operator and holds a 45% interest in the Stabroek block, Hess Guyana Exploration holds a 30% interest and CNOOC Petroleum Guyana holds a 25% interest.