ICBC participates in $1.75 billion syndicated loan for One Guyana FPSO Project

In 2022, Bank of China and ICBC participates in USD 1.75 billion syndicated loan for One Guyana FPSO Project, Guyana On July 21, 2022, GY-DW-UK-IV Limited -- a special purpose vehicle and joint venture of SBM Offshore (70% equity stake) and McDermott (30% equity stake) -- signed a $1.75 billion syndicated loan agreement with a group of 15 international lenders for the One Guyana FPSO Project.

The members of the loan syndicate included ABN AMRO, Bank of China, Caixa Bank, Citi, Clifford Capital, Credit Agricole, DNB, ICBC, ING, Intesa Sanpaolo, Mizuho, MUFG, SMBC, SMTB, and Societe Generale.

It will become non-recourse once the floating production storage and offloading (FPSO) is completed and the pre-completion guarantee has been released.

The proceeds of the loan are to be used by the borrower for the front end engineering, design, construction, and installation of a new FPSO for ExxonMobil, which is to be based in the Yellowtail development project, off the coast of Guyana. Yellowtail is the fourth development in the Starbroek offshore block, situated around 200km off the coast of Guyana.

ExxonMobil operates the block through local affiliate Esso Exploration and Production Guyana Limited (EEPGL) alongside its partners: EEPGL – 45%, Hess Guyana Exploration – 30%, and CNOOC Guyana – 25%.

SBM will own the FPSO itself for the first 2-years of operation after which operation and ownership will transfer to EEPGL. First oil from Yellowtail is expected in 2025. The vessel was originally expected to be ready for delivery in 2025.

Upon completion, it will be capable of producing on a daily basis 250,000 barrels oil and 450 million cubic feet of gas. It will also be able to store around 2 million barrels of crude.

The project not only meets SBM Offshore’s own ESG standards, but also went through an extensive ESG due diligence with the banks, shipyard and client. SBM won the front end engineering and design (FEED) contract for the FPSO in November 2021.

Finalized contracts for the vessel were signed in April (2022) after Yellowtail’s sponsors – led by ExxonMobil – reached a positive final investment decision (FID) for the broader development. Fabrication of topside modules of the FPSO began in October 2022. Then, in March 2023, the vessel successfully entered drydock at the Keppel yard in Singapore.