Dutch Firm Secures $465M Funding for Mexico-Bound FSO

SBM Offshore has secured project financing worth $465 million for the Chalchi floating storage and offloading (FSO) vessel, being built for Woodside Energy's Trion project offshore Mexico.

The financing has been provided by a consortium of international banks and institutional investors and includes partial insurance cover from China Export & Credit Insurance Corporation.

SBM Offshore said the financing would be drawn during the construction period and would become non-recourse after the vessel starts operations. The loans have a maximum tenor of about 14 years after completion.

FSO Chalchi is currently under construction and will operate under 20-year lease and operating contracts with Woodside Energy through its Mexican affiliate, Woodside Petróleo Operaciones de México.

The vessel is based on a Suezmax-type hull and will be equipped with a disconnectable turret mooring system designed by SBM Offshore. It will operate in water depths of about 2,500 meters and have storage capacity of around 950,000 barrels of crude oil.

The FSO will be deployed at the Trion field, located about 180 km off the Mexican coast and 30 km south of the U.S.-Mexico maritime border. The Trion project is a joint venture between operator Woodside, which holds a 60% interest, and Petróleos Mexicanos,