SBM Offshore signs leaseback arrangement for Brazil FPSO

SBM Offshore has signed a $400 million sale and leaseback financing agreement for the FPSO Cidade de Paraty, which it aims to conclude by the end of this month.

At present, the platform, which has been operating at the Tupi oil field in the presalt Santos Basin offshore Brazil, is owned by a special purpose company. This is in turn owned 63.125% by affiliated companies of SBM Offshore and 36.875% by its partners.

Under the agreement, the special purpose company will transfer ownership to four Chinese leasing companies. SBM Offshore and its partners will continue to operate and maintain the FPSO until the end of the initial charter and operate contracts, for the remaining period of 8.5 years.