Federative Republic of Brazil /Loan Insurance for Sepia oil field FPSO Project
Nippon Export and Investment Insurance
Nippon Export and Investment Insurance (NEXI; Chairman and CEO: Kazuhiko Bando) has decided to provide loan insurance to support a long-term FPSO 1 charter project in the Sepia oil field (“Project”). For the Project, MODEC, Inc. (“MODEC”), Mitsui & Co., Mitsui O.S.K. Lines, Ltd., Marubeni Corporation and Mitsui Engineering & Shipbuilding Co., Ltd. have agreed to invest in Sepia MV30 B.V. (“MV30”), in the Kingdom of the Netherlands. Through MV30, the FPSO will go on charter to Petróleo Brasileiro S.A. (“Petrobras”), the Brazilian state owned oil company.
The FPSO will be built by MODEC to be used in the Sepia oil field located about 250km off the south east coast of Rio de Janeiro, in the pre-salt layer at about 5,000 m water depth. The FPSO will be on charter via MV30 to Petrobras for 21 years under the charter agreement on leasing, operation and maintenance, with the capacity to process up to 180 thousand bbl of crude oil and 212 mmscf of gas per day, and store about 1,400 thousand bbl of crude oil.
For the Project, MV30 is planning to raise fund of about USD 988 million through project financing. ING Bank N.V., Tokyo Branch, Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., Oversea Chinese Banking Corporation, Tokyo Branch, Societe Generale, Tokyo Branch and the Bank of Tokyo-Mitsubishi UFJ, Ltd. will provide loans, and NEXI will provide insurance to support part of the loans extended by these commercial banks (totaling about USD 247 million). Japan Bank for International Cooperation (“JBIC”) will also provide loan to the Project.
NEXI will continue to support the expansion of overseas business by Japanese companies.
| Insured | ING Bank N.V., Tokyo Branch, Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., Oversea Chinese Banking Corporation, Tokyo Branch, Societe Generale, Tokyo Branch, The Bank of Tokyo-Mitsubishi UFJ, Ltd. |
| Insurable Value | Approx. USD 247 million |
| Tenor | 12 years |
| Covered Risks | Political Risk 100%, Commercial Risk 90% |
Contact: Natural Resources Group I, Structured and Trade Finance Insurance Department
Tel: 03-3512-7670
1 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.