Splash247: BW Energy secures $365m in funding for Brazilian FPSO

Norway’s BW Energy has secured a $365m facility to fund the refurbishment and redeployment of the Maromba FPSO to its namesake field offshore Brazil.

The project finance facility, backed by China Export & Credit Insurance Corporation, was significantly oversubscribed and will cover approximately 80% of the total FPSO project cost.

The facility has an interest rate of SOFR plus a margin of 2.8% and is structured as a project finance loan with progressive drawdowns during the construction period, followed by a 6.5-year amortisation period after project completion. A commitment fee of 40% of the margin applies to undrawn amounts until completion.

“The closing of this financing marks an important milestone in the Maromba development, demonstrating our ability to secure competitive long-term funding and build strong relationships with a diversified group of new lenders from the Middle East and Asia,” said Brice Morlot, CFO of BW Energy.

Separately, the company finalised a short-term lease with Minsheng Financial Leasing for the acquisition of the Maromba development rig.

The short-term lease covers the purchase price of $107.5m for the Super Gorilla class jackup rig BW Maromba B. The current lease is structured as a bareboat charter with interest-only payments and will be replaced by a long-term charter once completed.