SBM Offshore secures loan to build Brazil’s largest oil production unit

September 24, 2021, by Nermina Kulovic

Dutch FPSO operator SBM Offshore has secured a $635 million bridge loan facility for the financing of the construction of FPSO Almirante Tamandaré.

Fast4Ward FPSO design; Source: SBM Offshore

Back in June 2021, SBM also completed the project financing for a total of $1.05 billion for the FPSO Prosperity, which is destined to operate on ExxonMobil’s Payara development offshore Guyana.

Earlier in September, the FPSO operator also finalised the project financing of FPSO Sepetiba for a total of $1.6 billion, which is the largest project financing in the company’s history.

As explained by SBM on Thursday, the latest facility was secured by the special purpose company which will own FPSO Almirante Tamandaré. Currently, SBM Offshore is the sole owner of this special purpose company. Discussions around the divestment of 45 per cent of the equity ownership to partners continue to progress.

The facility will be fully drawn in the coming days to finance the ongoing construction of the FPSO Almirante Tamandaré. The tenor of the bridge loan is twelve months with an extension option for another six months. Repayment is expected to take place upon closure and the first drawdown of the project loan.

Following a binding Letter of Intent from February 2021, SBM Offshore signed contracts with Petrobras for the 26.25 years lease and operation of FPSO Almirante Tamandaré in July 2021.

FPSO Almirante Tamandaré will be deployed at the Búzios field in the Santos Basin approximately 180 kilometres offshore Rio de Janeiro in Brazil. It will be the sixth unit of the definitive system to be installed in the Búzios field and will be capable of processing 225 thousand barrels of oil and 12 million cubic meters of gas per day.

SBM Offshore is progressing with the design and construction using its Fast4Ward program with the fourth Fast4Ward MPF hull being allocated to this project. According to the previous information, the FPSO will be the largest oil-producing unit operating offshore Brazil and one of the largest in the world.