FSO Chalchi, a Suezmax-type floating storage and offloading (FSO) vessel being built to support the Trion deepwater project in the western Gulf of Mexico, has reached a major project milestone after securing US$465 million in project financing.
The financing package was provided by a consortium of international commercial banks and institutional investors. Supported by partial export credit insurance from China Export & Credit Insurance Corporation (Sinosure). Funds will be drawn during construction and convert to non-recourse debt once the FSO begins operations. The loans carry a maximum tenor of approximately 14 years from first oil.
Chalchi is under construction at COSCO Shipping’s shipyard in Qidong, China. SBM Offshore will hold the majority interest in the vessel, with Nippon Yusen Kaisha (NYK) holding a minority stake. The new-build FSO will be based on a Suezmax-type hull and fitted with SBM Offshore’s Disconnectable Turret Mooring system. Enabling mooring in roughly 2,500 metres of water. The vessel’s storage capacity is about 950,000 barrels of crude oil.
The FSO will be leased to and operated by SBM Offshore under a 20-year lease-and-operate contract for Woodside Energy’s Mexican affiliate, Woodside Petróleo Operaciones de México, S. de R.L. de C.V. The vessel is intended for deployment at the Trion field. Located about 180 km off the Mexican coastline and roughly 30 km south of the US–Mexico maritime border. The Trion development is a joint venture between Woodside (60%, operator) and Petróleos Mexicanos (Pemex, 40%, non-operator).
Douglas Wood, chief financial officer of SBM Offshore, said the company welcomed the financing as its first transaction combining commercial banks, institutional investors and export-credit support.
“This financing structure demonstrates SBM Offshore’s ability to deliver innovative, long-term funding solutions for our clients and provides a scalable solution for potential new lease and operate projects,” he said.
Why the Financing Matters
Risk alignment: Converting to non-recourse debt at start-up ties lender repayment to the asset’s operational performance rather than parent company balance sheets, reducing sponsor exposure.
Market confidence: The combination of commercial banks, institutional investors and export credit support demonstrates continued investor appetite for long-dated, infrastructure-style financing in the offshore energy sector.
Project enablement: Chalchi’s storage and offloading capability is central to enabling commercial production at Trion, Mexico’s flagship deepwater development in the Perdido Belt.
Additionally, while Chalchi is part of Mexico’s upstream Trion development, the project sits within a wider Gulf of Mexico energy corridor that includes proposed offshore export infrastructure such as Texas GulfLink. Together, these projects highlight the region’s evolving role as both a major production hub and a potential deepwater export gateway for crude oil.
Project Status and Timeline
Construction milestones: Steel cutting for Chalchi took place on 20 September 2025 at COSCO Shipping’s Qidong yard. While keel laying was achieved in the first half of 2026.
Operational target: The broader Trion project is targeting first oil in 2028. Pending completion and commissioning of the FSO, FPSO and subsea systems.
Ownership and Commercial Arrangements
Ownership: SBM Offshore (majority interest) and NYK (minority interest). SBM will lease and operate the vessel on behalf of the Woodside–Pemex joint venture.
Contracting: Chalchi will operate under a 20-year lease-and-operate contract with Woodside Petróleo Operaciones de México.
What to Watch Next
- Delivery and commissioning of Chalchi alongside the Trion FPSO and subsea infrastructure.
- Any announcements of secondary stake sales or changes in the vessel’s ownership structure.
- Whether Trion remains on track for first oil in 2028 and meets its initial production targets.
Factsheet — FSO Chalchi
Project: FSO Chalchi — floating storage and offloading vessel for the Trion field
Purpose: Store and offload crude oil produced from the Trion deepwater field
Location: Trion field, western Gulf of Mexico (Perdido Belt). Approximately 180 km off Mexico and approximately 30 km south of the US–Mexico maritime border
Field operator: Woodside Energy (60%, operator) and Pemex (40%, non-operator)
Vessel owner/operators: SBM Offshore (majority interest) with NYK (minority stake); SBM to lease and operate under a 20-year contract for Woodside’s Mexican affiliate
Hull type: Suezmax-type new build
Mooring system: SBM Offshore Disconnectable Turret Mooring system
Water depth: Approximately 2,500 metres
Storage capacity: Approximately 950,000 barrels of crude oil
Construction yard: COSCO Shipping, Qidong, China
Key milestones: Steel cutting (20 Sep 2025); keel laying (H1 2026)
Financing: US$465 million project financing from a consortium of international banks and institutional investors, with partial insurance from China Export & Credit Insurance Corporation (Sinosure)
Financing terms: Drawn during construction; converts to non-recourse debt upon the start of operations; maximum tenor of approximately 14 years from first oil
Commercial terms: 20-year lease-and-operate contract with Woodside Petróleo Operaciones de México
Target first oil (Trion): 2028 (project target)
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