A joint venture has secured US$220mn in debt for the purchase of a floating production, storage and offloading (FPSO) facility.
PT M3 Ketapang Sejahtera, owned jointly by M3nergy and PT Transamudra, will use the finance to buy the FPSO Ratu Nasuntara, which will be operated in the Bukit Tua oil and gas field off East Java, Indonesia. The FPSO will be operated by Petronas Carigali.
M3nergy is a Malaysian exploration and production company, owned by Sabah Development Bank. Transamudra is an owner and operator of offshore oil and gas vessels, from Indonesia. The vessel is constructed by Keppel of Singapore.
The finance came from a syndicate of banks and ECAs, comprised of CIMB Bank, Malaysia Exim, Industrial and Commercial Bank of China, National Bank of Abu Dhabi, Natixis, OCBC and SMBC. SMBC acted as co-ordinating bank for the lenders as well as facility agent and security agent.
Joint venture director Usaha Sejahtera says: “The journey in concluding this deal was certainly a very enriching experience. For two companies with different backgrounds to come together as one to make things happen, truly makes this a model success story. We see this project as the first of many to come for the sponsors in Indonesia. Of course, we could not have done it without the unrelenting support of SMBC, which saw the potential of this project. A special mention also goes to OCBC for its unwavering support over the years.”
Law firm Watson, Farley & Williams advised the borrower. Asia practice partner Andrew Nimmo says: “We are delighted to achieve a successful completion of this facility for M3nergy and PT Transamudra, representing a landmark first step into the Indonesian market for M3nergy and demonstrating the strong support for the sponsors and this project from their financiers.”