Japan Bank for International Cooperation (JBIC) has entered into an agreement to provide a project loan for a floating production storage and offloading (FPSO) vessel jointly owned by compatriot companies Modec, Mitsui & Co, MOL and Marubeni Corporation.
The unit, FPSO Almirante Barroso MV32, is currently being converted from VLCC VK Eddie at the Cosco Dalian yard in China and will be chartered to Petrobras for operations in Buziosfield under a 21-year agreement.
Under the agreement, JBIC will provide $491m under its Growth Investment Facility, joining a $1.35bn co-financing with MUFG Bank, Sumitomo Mitsui Banking Corporation, Mizuho Bank, ING Bank, SocieteGenerale, Citi Bank, Clifford Capital, Standard Chartered Bank and BNP Paribas. Nippon Export and Investment Insurance (NEXI) will provide the insurance for a part of the loan.
It is the seventh FPSO the four Japanese companies have collaborated on for operations in Brazil.
According to JBIC, the project will contribute to enhancing the international competitiveness of the Japanese offshore industry and also expected to secure stable supply of natural resources to Japan in the long term.