Netherlands-based SBM Offshore Expands into Sale and Leaseback Financing

Netherlands-based SBM Offshore, a leading provider of offshore floating facilities, has ventured into sale and leaseback financing with a significant refinancing deal for an FPSO vessel in Brazil.

SBM Offshore has secured a $400 million non-recourse sale and leaseback financing agreement for the FPSO Cidade de Paraty, marking its first foray into this type of financing. The agreement, with a tenor of eight years, is set to be finalized by the end of April 2025, subject to certain closing conditions being met.

The FPSO Cidade de Paraty is currently owned by a special purpose company, with SBM Offshore and its partners holding a majority stake. As part of the deal, ownership of the vessel will be transferred to four Chinese leasing companies, while SBM Offshore and its partners will continue to operate and maintain the asset for the remaining 8.5 years of the charter.

Since its deployment in June 2013, the FPSO Cidade de Paraty has been operating under a twenty-year charter on the Lula Nordeste development in Brazil’s Santos Basin. The vessel has the capacity to process 120,000 barrels of oil per day, treat associated gas, and inject water for enhanced oil recovery.

CFO of SBM Offshore, Douglas Wood, expressed satisfaction with the financing deal, emphasizing the company’s commitment to providing innovative financing solutions for its clients. He highlighted the strategic importance of the transaction in showcasing SBM Offshore’s unique lifecycle offering.

SBM Offshore’s move into sale and leaseback financing comes on the heels of the arrival of another FPSO in the Santos Basin, further solidifying its presence in Brazil’s pre-salt region. The company’s continued expansion and strategic partnerships underscore its position as a key player in the offshore energy sector.