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SBM Offshore Signs $465 Million Project Financing for FSO Chalchi

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SBM Offshore said Monday that it arranged $465 million in project financing for the FSO Chalchi, which is under construction for deployment at the Trion field.

An international consortium of banks and institutional investors is providing the financing, with partial insurance support from China Export & Credit Insurance Corporation, SBM Offshore said.

SBM Offshore will use the financing throughout the construction phase before it converts to non-recourse once the FSO starts operating, the company said. The loans will mature over a maximum period of about 14 years after project completion.

Woodside Energy's Mexican affiliate awarded SBM Offshore a 20-year lease and operating contract for the FSO, the company added. SBM Offshore is constructing the vessel with a Suezmax-type hull and its proprietary Disconnectable Turret Mooring system.

Once deployed at the Trion field, the FSO will operate in water depths of about 2,500 meters and hold around 950,000 barrels of crude oil. The field lies about 180 kilometers off Mexico's coastline and 30 kilometers south of the US-Mexico maritime border, according to the company.

Woodside serves as operator of the Trion project with a 60% interest, while Petroleos Mexicanos holds the remaining 40%, SBM Offshore added.

"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," said Douglas Wood, CFO at SBM Offshore.

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