GIEK awarded ECA deal of the year

The cooperation between the financial partners involved with Teekay’s floating production and storage unit (FPSO) Petrojarl Knarr was recently awarded “ECA deal of the year” by Marine Money Offshore. Senior Vice President Vibeke Stray has in collaboration with legal counsels Julianne Heltne and Cathrine Toset represented GIEK in the transaction.

GIEK receives the price together with Citi, K-sure, Kexim, WFW, Korea Exchange Bank, BTMU, DBJ, Credit Suisse, ABN, DBS and Crédit Agricole, which also participated in financing the unit.  

The deal is not only notable due to its size, but also for the number of participants, particularly the numbers of export credit agencies (ECAs) that back the financing with USD 185 million. Coordinating the all the requirements, criteria’s and national laws of the three ECAs participating added significantly to the complexity of the deal. The financial package is comprised of four tranches where GIEK provided guarantees of USD 120 million with a 10 year term, based on Norwegian equipment supplied to the unit.

Petrojarl Knarr was completed in 2015 and entered a six-year contract with BG Norway to operate on the Knarr field in the North Sea.

The unit was constructed at the Samsung Heavy Industries yard in South Korea at a cost of approximately USD 1.2 billion.


Photo: Teekay Corporation