Mayor Jay GillianThe following is Ocean City Mayor Jay Gillian’s weekly update to citizens posted on Friday, August 8. Dear Friends,Earlier this week, the city received notice that Standard & Poor’s Ratings Services has assigned its ‘AA’ long-term rating to Ocean City’s series 2014 general obligation bonds. At the same time, Standard & Poor’s affirmed the ‘AA’ long-term rating on the city’s outstanding general obligation debt. The ‘AA’ rating is one of the top ratings a municipality can receive. This is outstanding news for Ocean City.City Council and the City’s leadership team have been diligent in developing responsible budgets and reasonable reserves. Our capital plan is aggressive yet responsible, and we have shown we are financially prepared for emergencies. These actions have resulted in maintaining our outstanding bond rating.Some of the highlights of the report include:Strong management environment and good financial management policiesVery strong budgetary flexibility with available reserves expected to remain above 8 percent of current fund expenditures and excess tax levy capacityStrong budgetary performance with a history of stable operational resultsVery strong liquidity, providing cash to cover both debt service and expendituresVery weak debt and contingent liabilities profileThis rating change provides the City improved financial opportunities and makes us more attractive in the financial markets. It should allow us to benefit from improved interest rates. It is certainly comforting to know that following diligent research, well respected outside agencies repeatedly rate our finances among the best. I would like to offer congratulations to City Council and the city team.I hope everyone has a great weekend.Warm regards,Jay A. GillianMayor
Dutch FPSO operator SBM Offshore has signed contracts with Petrobras for the 22.5 years lease and operation of FPSO Sepetiba (formerly known as Mero 2). These contracts follow the signing of the binding Letter of Intent (LOI) announced on June 11, 2019. The final investment decision for the Mero 2 project was also made last June.The FPSO Sepetiba will be deployed at the Mero field in the Santos Basin offshore Brazil, 180 kilometers offshore Rio de Janeiro.SBM Offshore said on Wednesday it was progressing with the design and construction using its Fast4Ward program as it incorporates the company’s new build, multi-purpose hull combined with several standardized topsides modules. Delivery of the FPSO is expected in 2022.The FPSO will be designed to produce 180,000 barrels of oil per day. It will have a water injection capacity of 250,000 barrels per day, associated gas treatment capacity of 12 million standard cubic meters per day and a minimum storage capacity of 1.4 million barrels of crude oil.The Libra block, where the Mero field is located, is under Production Sharing Agreement to a Consortium comprised of Petrobras, as the Operator, with 40 percent, Shell with 20 percent, Total with 20 percent, CNODC with 10 percent and CNOOC Limited with 10 percent interest.The consortium also has the participation of the state-owned company Pré-Sal Petróleo SA (PPSA) as manager of the Production Sharing Contract.In related news, SBM Offshore has recently ordered two new FPSO hulls in China from Shanghai Waigaoqiao Shipbuilding and Offshore Co., Ltd. (SWS) and China Merchants Industry Holdings (CMIH). These will be SBM’s fourth and fifth hulls ordered under the company’s Fast4Ward program. The two yards are currently working on the construction of SBM Offshore’s first three hulls which are already allocated to projects.