Bank of China contributes USD 125 million to Mero 3 FPSO Additional Facility loan

Project narrative

On August 20, 2021, a syndicate of twelve banks provided a USD 1.5 billion bridge loan facility to MISC Berhad, a subsidiary of Malaysia's state-owned oil and gas company PETRONAS, to finance the conversion of a Floating Production Storage and Offloading (FPSO) unit. The FPSO, named Marechal Duque de Caxias, is deployed to the Mero oilfield offshore Brazil under a 22.5-year lease agreement with Petrobras. Each bank contributed equally, with USD 125 million apiece. The loan has a 3.5-year tenor with a maturity date of February 20, 2025. It carries a floating interest rate of LIBOR + 1.5%, with additional fees including a 0.6% commitment fee and a 0.75% participation fee. The contributing banks were: Bank of China, Arab Banking Corporation, HSBC, Sumitomo Mitsui Banking Corporation, Standard Chartered Bank, Societe Generale, MUFG Bank, Mizuho Financial Group, Maybank, Clifford Capital, CIMB Group, and DBS Bank. The FPSO Marechal Duque de Caxias achieved first oil on October 30, 2024. It is equipped to produce 180,000 barrels of oil per day and handle up to 12 million cubic meters of gas daily. The unit connects to 15 wells (8 producers and 7 injectors) and increases the Mero field’s installed production capacity from 410,000 to 590,000 barrels per day. The vessel incorporates sustainability features, including zero routine flaring and gas reinjection, and will serve as the platform for a High-Pressure Subsea Separation (HISEP) pilot beginning in 2028. The FPSO was converted from a VLCC and is equipped with predictive maintenance and asset integrity systems designed to operate without dry-docking over its service life. Implementation support included MISC’s use of Metegrity’s Vision Enterprise and ABS Consulting for risk-based inspection and integrity management systems.