SBM Offshore, along with its joint venture (JV) partners QGOG Constellation and Mitsubishi Corporation (MC), has secured a loan of $1.05bn to fund the construction of the FPSO (floating production, storage and offloading) vessel Cidade de Ilhabela.
According to the company, the finance will be repaid over a ten-year period starting from the first oil production from the FPSO in September 2014.
Earlier in 2012, SBM awarded the contract to Guangzhou Dockyards to convert the VLCC Cidade de Ilhabela to an FPSO.
The project involves the installation of a mooring system and an inport/outport platform, as well as main deck renewal, reinforcement in tank, rebuilding accommodation and combustion foundation, engine room reconditioning and cargo hole blasting.
Conversion of the 265,243dwt FPSO from a VLCC vessel, which has a length of 400m and width of 70m, will take place over the next two years in China and Brazil.
The FPSO will have storage capacity of 1.6 million barrels, will be capable of reaching water depths of 2,140m, have a water injection facility for 180,000bpd and will have maximum throughput of 150,000bpd.
In April 2012, SBM Offshore and its JV partners signed a 20-year charter and operation contract for the FPSO Cidade de Ilhabela with GUARA and the BM-S-9 Consortium formed by Petrobras, BG E&P BRASIL and Repsol Sinopec Brasil.
Under the deal, the JV will deliver the FPSO for development of the north part of the Sapinhoá oil field, located off the Brazilian coast.
SBM is responsible for the engineering, procurement and construction work of the FPSO, which will include facilities for compression, removal of carbon dioxide and hydrogen sulphide.
The FPSO is scheduled for delivery in the second half of 2014.