Yinson Secures $230 Million Funding for FPSO Maria Quitéria in Brazil
Posted 07/08/2023 12:24
Yinson Production, a subsidiary of Kuala Lumpur-based energy infrastructure and technology company Yinson Holdings, has successfully secured a $230 million term loan facility for the construction and deployment of FPSO Maria Quitéria off the coast of Brazil.
The FPSO Maria Quitéria will be stationed at the Parque das Baleias integrated project, situated in the Petrobras-operated Jubarte field within the northern Campos Basin, approximately 80 kilometers off the coast of Anchieta, Espírito Santo, Brazil. With a water depth of approximately 1,300 meters, the field was discovered in 2001 and includes the Jubarte, Baleia Anã, Cachalote, Caxaréu, Pirambú, and Mangangá fields.
Global Infrastructure Partners (GIP), an independent infrastructure fund manager with approximately $100 billion in assets under management, structured and arranged the loan facility. Notably, this marks GIP's first financing involvement in a floating, production, storage, and offloading (FPSO) vessel and represents the first transaction between Yinson Production and GIP.
Markus Wenker, Chief Financial Officer of Yinson Production, expressed his satisfaction with the closing of the loan facility and conveyed appreciation to GIP and its partners for their trust in Yinson. He highlighted the significance of this collaboration in attracting sophisticated capital and diversifying the funding base beyond Asia. The company aims to expand its network of lenders and investors globally to explore new opportunities in the FPSO market and create value for its shareholders.
Yinson Production was awarded the supply, operation, and maintenance contract for FPSO Maria Quitéria by Petrobras in February 2022. This marked Yinson's second project award with Petrobras and its third project award in Brazil, aligning with the company's strategy to expand its presence in the country.
The construction of FPSO Maria Quitéria has reached nearly 70% completion as of June 2023, in line with the project schedule. The FPSO is on track to achieve first oil in the second half of 2024, boasting a production capacity of 100,000 barrels of oil and five million Sm3 of gas per day.
The successful $230 million loan facility underscores the attractiveness and robust investment outlook of the FPSO industry within the global energy infrastructure market. Yinson Production is recognized as a leading independent owner and operator of FPSOs worldwide. The loan facility received funding from GIP and other investors, including Gramercy Funds Management.
Jon Plavnick, GIP Credit Managing Director, expressed pride in partnering with Yinson Production for financing FPSO Maria Quitéria. He emphasized GIP Credit's ability to provide reliable and flexible capital solutions during both the conversion process in Shanghai and the FPSO's eventual time charter operations in Brazil. The investment showcases GIP's ability to offer custom capital solutions to top-tier infrastructure companies globally.
Recently, Yinson expanded its Brazil-bound FPSO fleet through the acquisition of an FPSO designated for Enauta's oil field operations off Brazil. Expected to be fully operational by mid-2024, this FPSO will feature six production wells. Yinson remains committed to its growth and presence in Brazil's offshore energy sector.