15 banks secure financing for SBM Offshore’s largest FPSO so far

Dutch FPSO operator SBM Offshore has completed the project financing of FPSO ONE GUYANA for a total of $1.75 billion, secured by a consortium of 15 international banks. This will be SBM’s largest FPSO so far and it will work for ExxonMobil off Guyana.

As detailed by SBM Offshore in an update on Thursday, it 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 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 per cent margin.

The FPSO ONE GUYANA builds on the experience to date of FPSOs Liza Destiny, Liza Unity, and Prosperity. As such, the design is based on SBM Offshore’s Fast4Ward programme that incorporates the company’s new build, multi-purpose hull combined with several standardized topsides modules.

The FPSO will be designed to produce approximately 250,000 barrels of oil per day, will have associated gas treatment capacity of 450 million cubic feet per day and water injection capacity of 300,000 barrels per day. The FPSO will be spread moored in a water depth of about 1,800 meters and will be able to store around 2 million barrels of crude oil.

The project is part of the Yellowtail development, which is the fourth development within the Stabroek block, circa 200 kilometres offshore Guyana. Esso Exploration and Production Guyana Limited, an affiliate of ExxonMobil, is the operator and holds a 45 per cent interest in the block, Hess holds a 30 per cent interest, and CNOOC Petroleum holds a 25 per cent interest.

ExxonMobil sanctioned the Yellowtail development, its fourth and largest on the block, in early April 2022 and followed it up with a contract confirmation with SBM for the supply of the FPSO for the project. The vessel will develop an estimated resource base of approximately 925 million barrels of oil. Six drill centres are planned with up to 26 production wells and 25 injection wells.