Page 13 - AfrOil Week 50 2020

AfrOil INVESTMENT AfrOil

“Kosmos plans to use up to one third of the ini- to focus our exploration portfolio on proven
tial proceeds to test two high-quality infrastruc- basins that offer superior returns with shorter
ture-led exploration prospects in the Gulf of payback and significant resource potential,” he
Mexico, each offering hub-scale potential with commented. “The proceeds enable Kosmos to
a low-cost, lower-carbon development scheme,” accelerate high-graded exploration opportu-
it said. “The company expects to use the remain- nities while strengthening the balance sheet,
der of the proceeds to reduce borrowings out- positioning Kosmos to create additional share-
standing under its credit facilities.” holder value. The contingent payments locked
Andrew Inglis, the chairman and CEO of into the agreement with Shell ensure we retain
Kosmos, said the deal would benefit his com- upside from frontier exploration with no further
pany. “With this transaction, we are continuing investment.” ™

Globeleq secures $250mn in funding

for Temane gas-to-power project

MOZAMBIQUE UK-BASED Globeleq and its partners in Cen-
tral Termica de Temane (CTT) have secured up
to $250mn worth of debt funding for a scheme
that will use domestically produced natural gas
to generate electricity.
Last week, Globeleq revealed that the US
International Development Finance Corp.
(IDFC) had pledged to provide up to $200mn
for the project, which calls for the construc-
tion of a 450-MW thermal power plant (TPP)
and associated transmission infrastructure in
Temane. It also reported that the OPEC Fund
for International Development had agreed to
make up to $50mn available. The funds will be
disbursed once the parties have finalised the
loan agreements and met the relevant condi-
tions, it said.
These loans will cover about 20% of the cost The CTT power plant will burn locally produced gas (Image: Golder/Globeleq)
of the CTT project, which is expected to carry a
price tag of around $1.246bn. The World Bank’s energy sector – namely, the Temane Transmis-
International Finance Corp. (IFC) has agreed sion Project (TTP), which will involve the con-
to provide the balance of debt funding for the struction of a 400-kV power transmission line
scheme, or nearly $1bn. along a 563-km route from the power station to
In a statement, Globeleq reported that it the South African border. This new line will be
had chosen an engineering, procurement and linked to the South African transmission grid,
construction (EPC) contractor for the project according to earlier reports.
through competitive bidding. As the winner of Mike Scholey, the CEO of Globeleq, said that
the contest, TSK (Spain) will design and build the CTT project had the potential to change
the TPP, which will be outfitted with gas-fired Mozambique for the better. “The Temane ini-
turbines manufactured by Siemens (Germany), tiative is an absolute regional game-changer,”
it said. he was quoted as saying in the company’s state-
“TSK has extensive experience in designing ment. “It will ensure a reliable and affordable
similarly-sized combined-cycle power plants power supply, [both] crucial elements for eco-
utilising the Siemens turbines,” it added. nomic and social development. CTT will pro-
Globeleq is working with three other com- vide electricity access to millions of people in
panies – eleQtra (UK), Sasol (South Africa) and the region.”
the national oil power provider Electricidade For his part, Marcelino Gildo Alberto, the
de Moçambique (EDM) – to build the CTT chairman and CEO of EDM, described the pro-
plant. Sasol will provide gas for the TPP from ject as a “key strategic priority.” He declared: “We
its onshore Pande-Temane Inhassoro fields, and remain committed to delivering this important
Globeleq will supply electricity to EDM under a CTT project, thereby contributing to the gov-
25-year tolling agreement. ernment’s goals of universal access by 2030 and
CTT will complement another scheme positioning of Mozambique as a regional energy
designed to improve and update Mozambique’s hub.” ™`

Week 50 16•December•2020 www. NEWSBASE .com P13