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SCF concludes new international project financing for two shuttle tankers

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SCF Group signed a new USD 110 million credit facility, for ten years, with three leading international banks: ING BANK N.V.; SMBC BANK EU AG and UNICREDIT BANK AG.

The facility will be used to finance the purchase of two new ice-class shuttle tankers, to be delivered in Q1 2022, to provide services for the Sakhalin 1 project that produces oil and gas in the Sea of Okhotsk, on the north-eastern shelf of Sakhalin Island, Russia.

Exxon Neftegas Ltd., an affiliate of Exxon Mobil Corporation, is the project’s operator and acts as the charterer for the vessels.

The new vessels will incorporate advanced design features that meet the latest environmental requirements, providing improved fuel efficiency and decreased CO2 emissions by at least 10% (when compared with previous generations of shuttle tankers). Delivery of the vessels will further enlarge SCF Group’s industrial business portfolio, adding over USD 300 million in value to Sovcomflot’s contract backlog.

Nikolay Kolesnikov, Executive Vice-President and CFO of Sovcomflot, said:

"We are grateful to our long-standing financial partners for their continued support of SCF’s business. We are also pleased that this financing reflected the Poseidon Principles, an initiative by the banking community allowing control of GHG emissions of their shipping portfolios and aimed at decarbonisation of the shipping industry. This new loan agreement demonstrates the high level of interest and support of international lenders to SCF Group, as well as the company’s uninterrupted access to the diversified sources of capital amid the market cyclicality. The completion of this project credit facility allows us to address in full funding requirements for new vessel deliveries in 2022."

Notes to Editors

Sakhalin-1 is an international project operated by Exxon Neftegas Limited. The project consortium also includes two affiliates of Rosneft (Russia), ONGC Videsh (India), and SODECO (Japan).

Sovcomflot has served Sakhalin 1 project since 2006. Seven SCF vessels are used for Sakhalin 1, including five Aframax shuttle tankers of 1C ice class and two IBSV's with an ice class Icebreaker ICE-10.

SCF Press Office

PAO Sovcomflot (MOEX:FLOT) is one of the world's leading energy shipping companies, specialising in the transportation of crude oil, petroleum products, and liquefied gas, as well as the servicing of offshore oil and gas production. As of the date of this release, the Group’s fleet comprises 135 vessels with a total deadweight of 11.67 million tonnes, including vessels owned through joint ventures. About 80 vessels have an ice class.

Sovcomflot is involved in servicing large oil and gas projects in Russia and around the world: Sakhalin-1, Sakhalin-2, Varandey, Prirazlomnoe, Novy Port, Yamal LNG, Tangguh (Indonesia). The company is headquartered in Saint Petersburg, with offices in Moscow, Novorossiysk, Murmansk, Vladivostok, Yuzhno-Sakhalinsk, London, Limassol, and Dubai.