SBM Offshore has signed the project financing of FSO Chalchi for a total amount of US$465mn, backed by a consortium of international banks and institutional investors. 

It also includes partial insurance cover from China Export & Credit Insurance Corporation. The project financing will be drawn during the construction period and will become non-recourse after the FSO has started operations. The loans have a maximum tenor of 14 years post completion.

Right now undergoing construction, FSO Chalchi has been secured for a 20-year lease and operate contracts with Woodside Energy through its affiliate in Mexico, Woodside Petróleo Operaciones de México, S. de R.L. de C.V. (Woodside). Woodside is the Operator with 60% interests, while Petróleos Mexicanos enjoys rest of the 40% that makes up the Trion project joint venture.

Designed to hold around 950,000 barrels of crude oil, the new build FSO is based on a Suezmax-type hull and will be equipped with a Disconnectable Turret Mooring system designed by SBM Offshore.

To be moored in water depth of about 2,500 meters, the FSO will be deployed at the Trion field, located 180 km off the Mexican coastline and 30 km south of the US/Mexico maritime border.

Douglas Wood, CFO of SBM Offshore, said, “We welcome the signing of the project financing of FSO Chalchi, marking our first transaction combining commercial banks, institutional investors and support from an export credit agency. This financing structure demonstrates SBM Offshore’s ability to deliver innovative, long-term funding solutions for our clients and provides a scalable solution for potential new lease and operate projects.”