Sevan Marine signs financing facility for FPSO

Source: Energy Current

NORWAY: Sevan Marine signed a mandate with a financial institution to arrange a pre-delivery construction facility of US$280 million for floating production, storage and offloading vessel (FPSO) Sevan 300 No. 4, which converts into a long-term US$280 million amortizing term loan following delivery of the FPSO. The debt facility is structured as a limited recourse financing.

The FPSO is under construction at the Hantong Shipyard in China. The unit has been contracted to Venture Production Plc for the use on the Pilot field or another North Sea field. The contract has a duration of five or 10 years, originally to be determined at Venture's discretion by Dec. 31, 2007. Sevan and Venture are currently discussing the terms for an extension of this agreement.