US$800m raised for world's deepest FPSO

Singapore

SBM Offshore and its joint-venture partners have completed the project financing for the world's deepest floating production, storage and offloading (FPSO) vessel Turritella, slated to go on a multi-year contract at Shell-operated Stones field development in the Gulf of Mexico.

Project financing totalling US$800 million was secured by a consortium of 12 international banks led by ING with an average cost of debt of 3.5 per cent over the 10-year post-completion maturity. The Turritella FPSO underwent a 28-month conversion at Keppel Shipyard in Singapore before setting sail in October for the Stones field in the Walker Ridge area offshore Louisiana. When installed in some 2,896 metres of water at the field location, the vessel will be the deepest FPSO development in the world.

Turritella is owned and operated by a joint venture comprising affiliated companies of SBM Offshore (55 per cent), Mitsubishi Corporation (30 per cent) and Nippon Yusen Kabushiki Kaisha (15 per cent). The joint venture will own and operate the FPSO for an initial contract period of 10 years with future extension options of up to a total of 20 years for Shell Offshore Inc.

The FPSO is capable of processing up to 60,000 barrels of crude per day as well as treat and export 15 million cubic feet of gas per day. Its Suezmax hull will be able to store 800,000 barrels of crude oil.

To date, SBM Offshore and its project partners have raised US$2.35 billion in 2015 for two FPSOs, including an earlier announced US$1.55 billion funding for the Cidade de Saquarema floater.