Federative Republic of Brazil /Loan Insurance for Mero 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 FPSO1 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 E&S Holdings Co., Ltd. have agreed to invest in Libra MV31 B.V. (“MV31”), in the Kingdom of the Netherlands. Through MV31, the FPSO will go on charter to Petróleo Brasileiro S.A. (“Petrobras”) as Leader and Operator of the Libra Consortium2, the Brazilian state owned oil company.
The FPSO will be built by MODEC to be used in the Mero oil field located about 180km off the coast of Rio de Janeiro, in the pre-salt layer at about 5,000 m water depth. The FPSO will be on charter via MV31 to Petrobras as Leader and Operator of the Libra Consortium for 22 years under the charter agreement on leasing, operation and maintenance, with the capacity to process up to 180 thousand bbl of crude oil and 424 mmscf of gas per day, and store about 1,400 thousand bbl of crude oil.
For the Project, MV31 is planning to raise fund of about USD 995 million through project financing. ING Bank N.V., Tokyo Branch, MUFG Bank, Ltd., Sumitomo Mitsui Banking Corporation, Mizuho Bank and Société Générale, Tokyo Branch will provide loans, and NEXI will provide insurance to support part of the loans extended by these commercial banks (totaling about USD 249 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, MUFG Bank, Ltd., Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd. and Société Générale, Tokyo Branch |
| Insurable Value | Approx. USD 249 million |
| Tenor | 14 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.
2 Libra Consortium： A consortium formed by Petrobras (operator, 40%), Shell (20%), Total (20%), CNPC (10%) and CNOOC Limited (10%).