Norton Rose Fulbright Advises on a US$847 Million Loan Financing for TEN FPSO Project

The Tokyo, London, Amsterdam and Singapore offices of global legal practice Norton Rose Fulbright have advised Japan Bank for International Cooperation (JBIC) and a group of commercial lenders led by Sumitomo Mitsui Banking Corporation (SMBC) on a US$847 million loan facility which will be used to finance a floating production, storage, and offloading unit (FPSO).

The FPSO is to be made available on long term charter by a Dutch special purpose company to Tullow Ghana Limited (a Ghanaian subsidiary of Tullow Oil Plc) for oil and gas production in the Tweneboa, Enyenra and Ntomme fields (collectively known as the TEN field development) in the western Ghanaian sea territory.

The project sponsors are Modec, Inc., Mitsui & Co., Ltd., Marubeni Corporation and Mitsui O.S.K. Lines, Ltd.  The other syndicate banks are The Bank of Tokyo-Mitsubishi UFJ, Ltd., Mizuho Bank, Ltd., ING Bank N.V. and ABN AMRO Bank N.V. This transaction was JBIC’s first financing of an FPSO in Ghana.

Jeremy Gibb, partner in the Tokyo office of Norton Rose Fulbright commented:

“This represents the sixth ECA-backed FPSO financing advised on by the Tokyo office of Norton Rose Fulbright since our office opened in 2008, and follows the financial close of the financing for the “Cidade de Itaguaí  MV26” Cernambi Norte FPSO for the same sponsors earlier this year.

We are seeing a marked  increase in global demand for these units across the Norton Rose Fulbright practice as the commercial exploitation of deepwater oil and gas fields continues apace.”

The transaction was led in Tokyo by partner Jeremy Gibb, assisted by senior associate Paul Coggins and associates Andrew Clarke and Gemma Patterson. The Amsterdam team was led by partner Wouter Hertzberger with assistance from senior associate Mei Land Man and associates Joep Duinker and Martijn Hubertse.  The Singapore team was led by partners Ben Rose and Yu-En Ong, with assistance from senior associate Sue Ann Gan.  Partner Laurence Garside in London also advised.

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