Dutch company secures financing for oil production

AS first oil nears, Dutch company, SBM Offshore, on Tuesday announced that it has completed the project financing of the floating ship, FPSO Liza, for a total of US$720 million.

The ship, which is designed to produce up to 120,000 barrels of oil per day, will be spread -moored at the Liza field located in the Stabroek block circa, 200 kilometers offshore Guyana, in water depth of 1,525 meters and will be able to store 1.6 million barrels of crude oil.
FPSO is the acronym for Floating, Production, Storage and Offloading.
The company said in a release that project financing was secured by a consortium of 12 international banks. The company 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 guarantees have been released. The post completion project loan has a tenor of

10 years, with a variable interest cost of LIBOR plus 1.65 per cent.
The FPSO Liza will have associated gas treatment capacity of circa 170 million cubic feet per day and water injection capacity of circa 200,000 barrels per day, the company said.
The converted Very Large Crude Carrier (VLCC) FPSO Esso Exploration and Production Guyana Limited is the operator and holds a 45 per cent interest in the Stabroek block.
Hess Guyana Exploration Limited holds a 30 per cent interest and CNOOC Nexen Petroleum Guyana Limited holds a 25 per cent interest.

SBM Offshore provides floating production solutions to the offshore energy industry, over the full product life-cycle. The company is a leader in leased floating production systems with multiple units currently in operation and has unrivalled operational experience in this field.

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