Federative Republic of Brazil／Loan Insurance to Support New FPSO for Marlim Oil Field
Nippon Export and Investment Insurance
Nippon Export and Investment Insurance (NEXI; Chairman and CEO: Atsuo Kuroda) has decided to provide loan insurance to support a long-term FPSOⅰ charter project in the Marlim oil field (Project). For the Project, MODEC, Inc. (MODEC), Mitsui & Co., Mitsui O.S.K. Lines, Ltd. and Marubeni Corporation have agreed to invest in Marlim1 MV33 B.V. (MV33), a special purpose company incorporated in the Kingdom of the Netherlands. Through MV33, the FPSO will go on charter to Petróleo Brasileiro S.A. (Petrobras), the Brazilian state owned oil company for 25 years under the charter agreement on leasing, operation and maintenance.
The FPSO will be built by MODEC and will be deployed in the Marlim oil field located about 150km off the coast of Rio de Janeiro. The FPSO is expected to have capacity to process up to 80 thousand bbl of crude oil and 248 mmscf of gas per day and store about 1,000 thousand bbl of crude oil.
Of the USD 969.5 million project financing to be procured by MV33, NEXI will provide loan insurance to support part of the loans (totaling about USD 387.8 million) to be extended by MUFG Bank, Ltd., Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation, Standard Chartered Bank Tokyo Branch, BNP Paribas Tokyo Branch, and Societe Generale Tokyo Branch. Japan Bank for International Cooperation (JBIC) will also provide funding for the project.
As a policy-based financial institution, NEXI will continue to actively support Japanese companies in the expansion of their business internationally.
| Insured | MUFG Bank, Ltd., Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation, Standard Chartered Bank Tokyo Branch, BNP Paribas Tokyo Branch, and Societe Generale Tokyo Branch |
| Insured value | USD 387.8 million |
| Tenor | 12 years |
| Covered risks | Political and force majeure risks 100%, Commercial risk 90% |
Contact: Natural Resources Group I, Structured and Trade Finance Insurance Department
Tel: +81-(0)3-3512-7672
ⅰ 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.