SBM Offshore Gets $620M Bridge Loan For Mero FPSO

SBM Offshore Gets $620M Bridge Loan For Mero FPSO
SBM Offshore has secured a $620M bridge loan facility for the financing of the construction of the Mero field bound FPSO Alexandre de Gusmão.

FPSO operator SBM Offshore has secured a $620 million bridge loan facility for the financing of the construction of the Mero field bound FPSO Alexandre de Gusmão.

FPSO Alexandre de Gusmão will be deployed at the Mero field in the Santos Basin offshore Brazil, approximately 100 miles from Arraial do Cabo, Rio de Janeiro state. The FPSO will be the fourth vessel of its kind in the definitive system for the Mero field.

Mero is a project under Libra Consortium responsibility, in which Petrobras is the operator with 40 percent. Its partners Shell and TotalEnergies hold 20 percent each while CNODC and CNOOC hold 10 percent each. Pré-sal Petróleo S.A. (PPSA) is the manager of this contract.

SBM Offshore said that the facility was secured by the special purpose company which would own FPSO Alexandre de Gusmão. Currently, the FPSO operator is the sole owner of this special purpose company. Discussions around the divestment of 45 percent 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 Alexandre de Gusmão.

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.

It is worth noting that the FPSO will be built under its Fast4Ward program. The company’s fifth MPF hull has been allocated to this project. Completion of the vessel is expected in 2024 and production is scheduled to start in 2025. It will be capable of processing 180 thousand barrels of oil and 423.8 cubic feet per day of gas.

The project foresees the interconnection of 15 wells to the FPSO, 8 of which are oil producers, 6 water and gas injectors, and 1 convertible well from producer to gas injector through a subsea infrastructure composed of rigid production and injection pipelines and flexible service pipelines. So far, the project has four wells drilled and two completed.

Before this contract was signed, Petrobras already agreed to three definitive Mero systems. The first, or Mero 1, will start producing in 2022 through FPSO Guanabara. It will be followed by Mero 2 via the FPSO Sepetiba in 2023, while Mero 3 will start production in 2024 through the FPSO Marechal Duque de Caxias.

To contact the author, email bojan.lepic@rigzone.com


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