Constellation’s efforts to clear up its balance sheet took a step forward this month with the sale of minority stakes in five floating, production, storage and offloading vessels operated and majority-owned by SBM Offshore.

SBM paid $149 million for additional equity in the five FPSOs, but the cross collateral package worked around Amarelina Star and Laguna Star rigs forms an important part of Constellation's restructuring plan. Sources suggested that the Constellation rig fleet is worth approximately $900 million with a current backlog of $530 million.

Earlier this year, Constellation signed new Petrobras charters for the semi-submersibles Alpha Star, Gold Star and Lone Star, although rates came in at under $150,000.

The company's highest-capacity rig, the Brava Star drillship, was working for just $110,000 per day, but this was recently raised to $169,000 when Shell exercised extension options.

Constellation's debt load is $1.5 billion, payable through 2025. ING, BNP Paribas, Citi and Giek are due to collect project finance dues by 2023 while bondholders, led by Moneda and Pimco, are due to redeem in 2024, and Brazil's Bradesco due for full payment by 2025.

Finance

Sale of minority stakes in FPSOs raises much-needed funds