Post by Etulan Adu

Big moves in #offshore energy finance! ​Dutch firm SBM Offshore just closed a massive $465 million project financing deal for its upcoming, Mexico-bound Floating Storage and Offloading (FSO) unit, the #FSO Chalchi. ​What makes this deal a major milestone isn't just the dollar amount—it’s how it was structured. For the first time, SBM Offshore successfully built a hybrid funding package combining: ➡️ ​Commercial banks ​➡️ Institutional investors ➡️ ​Export Credit Agency (ECA) support, with partial insurance cover from the China Export & Credit Insurance Corporation (Sinosure) ✅️ ​According to SBM Offshore's CFO, Douglas Wood, this unique, scalable model proves the industry can secure innovative, long-term funding even for massive, complex capital projects. ​🚢 The Specs: FSO Chalchi at a Glance ​This isn’t just any vessel. Once finished, the FSO Chalchi will head to the deepwater Trion field, a flagship mega-project located 180 km off the coast of Mexico (just 30 km south of the US-Mexico maritime border). ​Here is what the engineering looks like: 🤔 ✅️ ​Hull Type: Suezmax-type newbuild ✅️ ​Mooring: Disconnectable turret mooring system ✅️ ​Operating Depth: A staggering 2,500 meters (deepwater) ✅️ ​Storage Capacity: Roughly 950,000 barrels of crude oil ✍️ ​Charter Terms: Locked into a 20-year lease-and-operate agreement with Woodside Energy (operating a 60/40 joint venture with Pemex). ​💰 Financing ​The $465 million loan is set up to be drawn throughout the construction phase. Once operations officially kick off at the Trion field, the debt transitions to a non-recourse structure, carrying a maximum tenor of about 14 years post-completion. This drastically limits corporate risk while locking in stable, long-term returns. ​As deepwater exploration picks up speed globally, watching how companies structure these capital-intensive projects is going to be key. SBM Offshore might have just provided the blueprint for the next wave of deepwater projects. ​👇 What are your thoughts on this hybrid financing model? Will we see more ECAs stepping in to guarantee deepwater energy projects? Source: ➡️ https://lnkd.in/eCAW2-xc ​#OffshoreEnergy #ProjectFinance #OilAndGas #MaritimeIndustry #Deepwater #SBMOffshore #WoodsideEnergy