BW Energy has completed a $365mn project financing to support the refurbishment and redeployment of the Floating Production Storage and Offloading (FPSO) unit for the Maromba oil field, located offshore Brazil. The facility is backed by China Export & Credit Insurance Corporation (Sinosure) as export credit insurer.
The financing covers about 80% of the total FPSO project cost and was heavily oversubscribed. It is provided by a consortium including The Export-Import Bank of China (CEXIM), Abu Dhabi Commercial Bank PJSC (ADCB), Arab Banking Corporation B.S.C. (Bank ABC), National Bank of Fujairah (NBF) and Commercial Bank of Dubai (CBD). CEXIM, ADCB and Bank ABC acted as Mandated Lead Arrangers, while ADCB and Bank ABC also served as Structuring, Advisory and Documentation Banks. Bank ABC was appointed as Technical Advisory Bank.
Financing terms spread over several years
The facility is structured as a project finance loan with progressive drawdowns during the construction period, followed by a 6.5-year amortisation after project completion. The interest rate applied is based on the Secured Overnight Financing Rate (SOFR) plus a 2.8% margin. A commitment fee of 40% of the margin is charged on undrawn amounts until the FPSO is completed.
In parallel, BW Energy has entered into a short-term lease with Minsheng Financial Leasing Co., Ltd (MSFL) for the acquisition of a Super Gorilla class jack-up drilling rig, designated BW MAROMBA B. The purchase price for this transaction amounts to $107.5mn.
A transitional lease model to accelerate operations
The agreement with MSFL is structured as a bareboat charter with interest-only payments, allowing BW Energy to start preparations for the Maromba field development. This temporary lease will be replaced by a long-term financing agreement once discussions are finalised between the parties.
The Maromba field is one of BW Energy’s key offshore projects in Brazil. The company relies on the reuse of existing oil production infrastructure to lower development costs while securing access to competitive export credit agency-based financing.
