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Project Financing for Deepwater FPSO Chartering Project for T.E.N Offshore Oil Fields in Ghana
Supporting Offshore Resource Development of Japanese Companies and Strengthening Their International Competitiveness

  • Region: Africa
  • Energy and Natural Resources
  • Marine and Aerospace
  • Overseas Investment Loans
  • Project Finance
NR/2013-86
September 27, 2013
  1. The Japan Bank for International Cooperation (JBIC, Governor: Hiroshi Okuda) signed today  a loan agreement totaling up to 508.2 million U.S. dollars (JBIC portion) with T.E.N Ghana MV25 B.V. (TGMV25), a company incorporated in the Netherlands in which MODEC, Inc. (MODEC), Mitsui & Co., Ltd., Marubeni Corporation, and Mitsui O.S.K. Lines Ltd., have equity stakes. The loan, provided as project financing,*1 will be provided as necessary financing for a project in which a long-term FPSO*2  system chartering service will be offered by TGMV25 to Tullow Ghana Limited incorporated in Jersey, which is also a subsidiary of Tullow Oil plc in Great Britain, and will engage in the development of T.E.N. (Tweneboa, Enyenra, Ntomme) Oil Field*3 as their operator. The loan is cofinanced with Sumitomo Mitsui Banking Corporation (lead arranger), The Bank of Tokyo-Mitsubishi UFJ Ltd., Mizuho Bank Ltd., ING Bank N.V., and ABN AMRO Bank N.V. The total cofinancing amount is 847 million U.S. dollars. This loan is the first project financing FPSO project for JBIC in Ghana.
     
  2. In this project, MODEC will build a deepwater FPSO unit capable of operating more than 1,000 meters underwater, and with the capacity to produce up to 80 thousand barrels of crude oil and 170 million cubic feet of gas per day, and store about 1.7 million barrels of crude oil. TGMV25 will provide charter services (leasing and operation and maintenance services) to Tullow Ghana Limited for 10 years. The FPSO vessel will be deployed for developing T.E.N Oil Field.
     
  3. The Basic Plan on Ocean Policy, issued in April 2013 after revision, as a cabinet decision under the Basic Act on Ocean Policy which came into force in July 2007, stipulates: "Japan should advance technology development for methane hydrate, which is expected to exit in substantial amount in waters around Japan, in order to start projects for commercialized undertakings led by private sector companies in the late 2020's, while keeping sights on international developments." As marine resource development has been increasingly moving toward sophistication such as through further ultra-deep water activities, this loan will lead to the strengthening of the international competitiveness of Japanese companies in offshore resource development by helping them acquire and improve technologies, management practices, and knowhow regarding the operation of ultra-deepwater FPSO systems. Thereby, this financing is expected to contribute to the securing of access to resources and  stable supply of natural resources to Japan.
     
  4. The promotion of investment and trade through collaboration between the public and private sector in the African region was announced by the government of Japan at the TICAD V, and this loan is made, under the JBIC Facility for African Investment and Trade Enhancement ("FAITH")*4 , to support the promotion of private sector-led growth and the acceleration of infrastructure development in  African countries.   
     
  5. In light of the Basic Act on Ocean Policy and the Basic Plan on Ocean Policy, JBIC will continue to support Japanese companies'business deployment in overseas regions, including Africa, where offshore resource development is active, while keeping in mind the development and acquisition of strategically important resources to Japan, as well as the maintenance and improvement of the international competitiveness of Japanese marine industries
Note
  1. *1 Project finance is a financing scheme whereby the repayment of a loan extended to a project relies on cash flows generated by the operation of the project, with collateral limited to project goods and other assets.
  2. *2 A floating production, storage, and offloading (FPSO) system is a floating vessel for the first stage processing of crude oil produced at the oil well, which separates associated gas and water, and for the storage and offloading of oil.
  3. *3 A huge oil field located about 60 kilometers offshore of Ghana.
  4. *4 See Information on June 3, 2013

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