SBM Offshore Completes Controversial Sale of FPSO Prosperity for $1.23 Billion
- SBM Offshore and ExxonMobil Guyana Ltd completed the FPSO Prosperity purchase on November 7, 2024.
- The transaction amounted to approximately US$1.23 billion and will improve SBM Offshore's net debt position.
- SBM Offshore will maintain operational control of FPSO Prosperity until 2033 while ExxonMobil Guyana takes ownership.
On November 7, 2024, SBM Offshore and ExxonMobil Guyana Ltd finalized the purchase of the FPSO Prosperity, ahead of its maximum lease term, which was set to expire in November 2025. This transaction allows ExxonMobil Guyana to officially take ownership of the floating production storage and offloading vessel while SBM Offshore retains operational control until 2033. The total cash consideration for this acquisition amounts to about US$1.23 billion. The financial implications of this deal are significant; the net proceeds will primarily pay off US$0.98 billion in project financing. Consequently, this transaction will improve SBM Offshore's net debt position. Since its hire in November 2023, the FPSO Prosperity has demonstrated operational reliability, benefiting from the expertise of both companies in optimizing performance. The transaction's impact will be discussed further in SBM Offshore's Third Quarter 2024 Trading Update, which is scheduled for November 14, 2024. This update will provide stakeholders with insights into how the acquisition is expected to influence the company's financial forecasts and strategic direction moving forward. In a market where companies are striving for efficiency and operational excellence, this acquisition underscores SBM Offshore's commitment to achieving sustainable energy solutions leveraging their vast experience and resources.