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Offshore Finance – Important deal 2015

In September 2015, DVB acted as a lead arranger for a post-delivery project financing (comprising of a senior loan from Japan Bank for International Cooperation and another from commercial banks) of the “Cidade de Campos dos Goytacazes MV29” floating production, storage and offloading unit (FPSO), owned by a consortium established by MODEC Inc., Mitsui & Co., Mitsui O.S.K. Lines Ltd, and Marubeni Corporation.

In this project, MODEC will handle the engineering, procurement, construction and installation of a FPSO with the capacity to produce up to 150,000 barrels of crude oil and 176 million cubic feet of gas per day, and store about 1.6 million barrels of crude oil. The FPSO is expected to be delivered in the fourth quarter of 2017, and installed in 765 metres water depth in the Tartaruga Verde and Tartaruga Mestica fields located in the C-M-401 concession block in the Campos Basin offshore Brazil.

Upon delivery, the FPSO will commence a fixed 20-year lease to Petrobras, with MODEC operating the unit. The project financing will be repaid in full within the fixed term of the lease. This FPSO is the tenth F(P)SO unit to be chartered by MODEC to Petrobras. The successful closing of the transaction – and by extension the key assistance provided by DVB – will help MODEC cement its reputation as a leading provider of FPSOs worldwide, and also assist Petrobras in monetising its deepwater offshore fields.

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