Brazil/Loan Insurance for an Ultra-Deepwater FPSO Project

July 18, 2014

Nippon Export and Investment Insurance

Nippon Export and Investment Insurance ("NEXI") has decided to provide the loan insurance for the FPSO※ Project in Carioca area of a pre-salt oil field in Brazil ("Project") for Carioca MV 27 B.V. ("CMV27"), a company as the owner of FPSO, incorporated in Netherland by MODEC, Inc ("MODEC"), Mitsui & Co., Ltd., Mitsui O.S.K. Lines, Ltd, and Marubeni Corporation. The long term FPSO charter services will be offered by CMV27 to Guara B.V., which is the Dutch SPV, leading by Petróleo Brasileiro S.A. ("Petrobras"), the Brazilian state-owned oil company.


The Project consists of construction, leasing, operation and maintenance of FPSO with the capacity to process up to 100 thousand bbl of crude oil and 177 mmscf of gas per day, and store about 1,600 thousand bbl of crude oil for developing the Carioca oil field, located about 300km off the south coast of Rio de Janeiro, Brazil.


For this Project, CMV27 is planning to raise fund of about USD 1,129 million through project financing, a part of which NEXI will provide its insurance to commercial banks, including the Bank of Tokyo Mitsubishi UFJ, Mizuho Bank, Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust Bank, Mitsubishi UFJ Trust and Banking Corporation, and ING Bank (Tokyo Branch). Japan Bank for International Cooperation ("JBIC") will also provide its direct loan to this Project.


NEXI will continue to support the expansion of overseas business by Japanese companies.


※  FPSO: Floating Production, Storage and Offloading system is a floating vessel for the processing of crude oil produced at the subsea oil well, and for the storage and offloading of oil.


Insured amount Approximately USD 339 million
Covered risk Political Risk 97.5% and Commercial Risk 90%