Seatrium financed the FPSO supply contract for the Sangomar field with an option for a S$400 million sustainability-linked loan from DBS Bank.
Seatrium Limited, a leading player in the oil and gas industry, has secured an early refinancing of S$400 million (over US$303,13 million) from DBS Bank Limited, demonstrating its financial strength and commitment to high-value projects economic. This refinancing occurred shortly after the delivery of a converted floating production, storage and transfer vessel (FPSO) to MODEC, which is destined to operate in the offshore oil development project operated by Woodside in Senegal, highlighting the relevance of Seatrium on the global stage.
In partnership with Senegalese authorities and other companies in the sector, Seatrium has positioned itself as one of the main protagonists in maritime activities related to offshore oil, especially with its specialization in FPSO projects. The merger with Keppel Offshore & Marine Limited further strengthened the company's position, which can count on resources and expertise to work on oil and gas contracts, in addition to topside module manufacturing work and other demands related to marine vessels in the industry. .
Seatrium delivers the FPSO Léopold Sédar Senghor to MODEC Offshore Production Systems
On December 27, 2023, Seatrium delivered the FPSO Léopold Sédar Senghor for MODEC Offshore Production Systems, marking the Senegal's first offshore oil development. The FPSO will operate for Woodside in Phase 1 of the Sangomar field development. This field represents approximately 230 million barrels of crude oil and was sanctioned in January 2020. The Australian giant granted the contract for the supply of the FPSO to MODEC in honor of Senegal's first president, Leopold Sédar Senghor. O first oil is now scheduled for mid-2024, with a total project cost of between US$4,9 – 5,2 billion.
Marlin Khiew, Executive Vice President of Oil and Gas (Americas) at Seatrium, and his contribution to Senegal's oil and gas industry
Marlin Khiew, Executive Vice President of Oil and Gas (Americas) at Seatrium, expressed: 'We are pleased to support Woodside in contributing to Senegal's oil and gas industry with a first FPSO for deployment in the Sangomar field, providing long-term sustainable economic and social benefits for Senegal. The Léopold Sédar Senghor FPSO reinforces Seatrium's position as a world leader in the conversion, modification and completion of FPSOs and testifies to our strong execution capacity and versatility in carrying out a variety of projects as well as providing value-added services. It also marks our 20th major project for MODEC, building on the strong value creation and partnership we have forged over decades of collaboration.’
Successful refinancing and commitment to sustainability
Following the delivery of the FPSO Léopold Sédar Senghor, Seatrium subsidiary Seatrium Financial Services Pte. (SFS), refinanced an existing loan with a S$400 million three-year committed loan from DBS Bank Limited. Seatrium Group Finance Director commented: ‘We are pleased to receive strong support from DBS to early refinance our existing loan. This includes a sustainability-linked conversion option aligned with sustainability-linked lending principles, which will support the company in achieving its ESG goals over time.’
Commitment to sustainability and banking partnerships
Seatrium is committed to achieving its 2030 sustainability vision and supporting its customers in their decarbonization efforts through the construction, conversion and modernization of energy-efficient vessels. Because of this, the company is Working to achieve 40% of its net order book coming from renewable energy and cleaner/greener solutions and reduce its greenhouse gas emissions by 40% by 2030.
New investments in FPSO projects in other regions
The company's FPSO business is also growing. Recently, the company started work on another FPSO for MODEC, destined for Brazil. The hull of FPSO Bacalhau recently arrived at the Seatrium shipyard in Singapore, and work on board is ongoing. The company also secured a contract with Offshore Frontier Solutions Pte Ltd, a MODEC Group company, to carry out topside module manufacturing work for the FPSO Raia in Brazil. This project will be carried out at our BrasFELS shipyard located in Rio de Janeiro, Brazil, and is scheduled to begin in the first quarter of 2024.
Source: © OFF Shore Energy
