Two units of GE (NYSE: GE) are joining forces with oil drilling and
production technology company Sevan Marine ASA of Norway, Oilexco North
Sea Ltd. of Scotland, and a Chinese and other international shipyards to
deploy an innovative cylindrical floating oil production, storage and
offloading unit that can process 30,000 barrels of crude oil per day and
store 300,000 barrels.
Sevan Marine´s affiliate Sevan Pte Ltd signed
an agreement for a US $300 million senior debt project finance facility
for the Sevan Voyageur with mandated lead arrangers GE Energy Financial
Services and GE Transportation Finance. GE Capital Markets will
syndicate the facility, fully underwritten by the lead arrangers, to a
limited group of international banks. Norway´s
export credit agency, GIEK, has partially guaranteed the facility.
Eksportfinans funded GIEK´s portion of the
facility.
As the search for oil shifts to areas without sub-sea pipelines and to
smaller and marginal offshore fields, the floating unit offers a
smaller, more cost-effective means of production, storage and
offloading. Compared to other floating production, storage and
offloading units, the Sevan Voyageur, based on Sevan´s
proprietary technology, can operate more efficiently and in harsher
weather, with reduced maintenance, and is easier to re-deploy.
The Sevan Voyageur, the third unit in its class, is expected to be
installed in the Shelley Field in the UK´s
central North Sea during the fourth quarter of this year, and will
operate under a five-year contract with Oilexco North Sea Ltd, a
subsidiary of Oilexco, Inc. of Canada (LSE: OIL; TSE: OIL). Yantai
Raffles Shipyard in China´s Shangdon Province
built the hull, Norway´s GKSI shipyard built
the topside processing plant, and the Keppel Verolme Shipyard in
Rotterdam, the Netherlands, is installing the topside on the hull.
The debt facility is structured as a limited recourse financing
consisting of a pre and post-completion construction financing of up to
US $300 million that converts into a 5-year US $300 million amortizing
term loan following delivery of the Sevan Voyageur to Oilexco North Sea.
With this facility and the funding raised by Sevan in September 2007
under a NOK 870 million bond issue, the Sevan Voyageur is now fully
financed.
"This bank facility completes the financing of the second Sevan
floating, production, storage and offloading unit to be installed in the
North Sea," said Jan Erik Tveteraas, CEO of
Sevan Marine. "We now have five Sevan units
contracted to clients, with an ambition of expanding the fleet further.
The financing GE and its partners, including GIEK, are providing has
played an important role in our company´s
development."
GE has worked with Sevan Marine twice previously: on the financing of a
sister floating production, storage and offloading unit, the Piranema
deployed off Brazil, and of the Sevan Driller, an oil and gas drilling
vessel to be deployed in the ultra-deep waters of the US Gulf of Mexico.
"This extension of our relationship
underlines our trust in Sevan´s management
and the innovative solutions it is bringing to the floating production
market," said Ron Petrunoff, Executive Vice President and General
Manager, GE Transportation Finance.
Matt O´Connor, Managing Director and leader
of debt finance at GE Energy Financial Services, added: "GE´s
close relationship with Sevan Marine, our extensive oil and gas
technical, underwriting and investing expertise, our growing focus on
debt lead arranging and on global growth and technology all have
combined to make this transaction succeed."
GE Energy Financial Services´ $5 billion debt
portfolio spans oilfield services, pipelines, gas storage, refining
exploration and production, power, mining and fuel distribution. In
addition to debt financing in oil and gas, GE Energy Financial Services
maintains 22 partnership investments that produce an estimated 88
million cubic feet of natural gas and 9,400 barrels of oil daily from
onshore basins and shallow-water Gulf of Mexico.
About Sevan Marine ASA
Based in Arendal, Norway, Sevan Marine ASA is listed on Oslo Børs
(ticker SEVAN) and is specializing in building, owning and operating
floating units for offshore applications. The Company has developed a
cylinder-shaped floater, suitable in all offshore environments.
Presently Sevan Marine has four floating production, storage and
offloading units and one drilling unit contracted to clients. The
Company is also developing other application types for its cylindrical
Sevan hull, including floating LNG production and power plants with CO2 capture. More information: www.sevanmarine.com.
About GE Energy Financial Services
GE Energy Financial Services´ 350 experts
invest globally with a long-term view, backed by the best of GE´s
technical know-how and financial strength, across the capital spectrum
and the energy and water industries, to help their customers and GE
grow. With US $19 billion in assets, GE Energy Financial Services, based
in Stamford, Connecticut, invests more than US $5 billion annually in
two of the world´s most capital-intensive
industries, energy and water. More information: www.geenergyfinancialservices.com.
About GE Transportation Finance
For more than 30 years, GE Transportation Finance, based in Stamford
Connecticut with offices in Chicago, Hong Kong, London, Oslo and
Singapore, has been a leading provider of capital to the global
transportation industry, offering a broad range of financing solutions
including senior debt, tax-based and synthetic leases, and other
structured financial products. With US $45 billion in assets and a deep
understanding of the financing needs of companies in the marine
offshore, intermodal and rail industries, the unit helps find creative
and flexible solutions to meet its customers´ financing needs. Visit http://www.getransportationfinance.com
About GE
GE (NYSE: GE) is Imagination at Work -- a diversified technology, media
and financial services company focused on solving some of the world´s
toughest problems. With products and services ranging from aircraft
engines, power generation, water processing and security technology to
medical imaging, business and consumer financing, media content and
advanced materials, GE serves customers in more than 100 countries and
employs more than 300,000 people worldwide. For more information, visit www.ge.com
Editor´s Note: Caption for
accompanying photo: Two units of GE are joining forces with oil
drilling and production technology company Sevan Marine ASA of Norway to
deploy a floating oil production, storage and offloading unit "“ shown under construction -- that can process 30,000 barrels of crude oil
per day and store 300,000 barrels.
