Sevan Marine Secures Financing for Brazilian FPSO

Three GE financial businesses and ANZ, acting as joint Mandated Lead Arrangers, and Sevan Production AS, announced the signing of a US$120 million senior debt project finance facility for Sevan's first floating oil production, storage and offloading (FPSO).

The SSP Piranema will be deployed offshore Brazil under an 11-year charter with Petrobras. The innovative, cylindrical shaped FPSO is designed for all sea environments and will produce light crude for Petrobras. The SSP Piranema will be equipped with a processing plant capacity of 30,000 barrels of oil per day, a gas injection plant with compression capacity of 3.6 million cubic meters per day and an oil storage capacity of 300,000 barrels. The SSP Piranema is under construction at the Yantai Raffles shipyard in China. Once completed in mid-2006, it will be deployed in the Piranema field, in deep water ranging from 1,000 to 1,600 meters.

The debt facility is structured as a limited recourse financing containing a pre-completion construction financing that converts into a ten-year amortizing term loan following delivery of the SSP Piranema to Petrobras. This facility also is expected to refinance the outstanding portion of Sevan's March 2005 NOK bond issue, once it matures in March 2008.

"We are very pleased to enter into this loan agreement, which provides Sevan with financial flexibility during the construction and operating phases of the SSP Piranema," said Jan Erik Tveteraas, CEO of Sevan Marine ASA.

"This transaction demonstrates our growth in oil and gas and takes advantage of the wide range of GE's industry-focused financing businesses to meet Sevan Marine's unique requirements," said Alex Urquhart, President and CEO of GE Energy Financial Services.

"ANZ is delighted to have been given the opportunity to assist Sevan by arranging this debt facility for its first FPSO project," said Sven Dybdahl, Head of ANZ's Marine & Offshore Group.

GE Transportation Finance originated the transaction; GE Energy Financial Services and GE Capital Markets participated in the execution. Sevan Marine ASA is an offshore technology company that specializes in the market for floating production and storage of oil and gas. The company has developed a new, cylinder shaped platform type named SSP (Sevan Stabilized Platform), which is suitable for use in all sea environments. Sevan Marine has offices in Tananger and Arendal, Norway and Rio de Janeiro, Brazil. The Company is listed on the Oslo Stock Exchange with ticker code SEVAN. Sevan Production, AS is a subsidiary of the company.