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DMEA LNG DMEA

Total reveals details of Mozambique

LNG financing deal

MOZAMBIQUE FRANCE’S Total has divulged some details of expressed satisfaction with the financing
a recently signed financing agreement that will agreement. “The signing of this large-scale
Total has covered cover around three quarters of the projected project financing, less than one year after
almost 75% of the costs of the Mozambique LNG project. Total assumed the role of operator of Mozam-
post-FID costs. In a statement, Total said that members of bique LNG, represents a significant achieve-
the Mozambique LNG consortium had signed ment and a major milestone for the project,”
a senior debt financing deal worth $14.9bn. This Sbraire was quoted as saying in the statement.
is equivalent to almost 75% of post-final invest- “It demonstrates the confidence placed by the
ment decision (FID) costs, which have been esti- financial institutions in the long-term future
mated at $20bn. of LNG in Mozambique. This key milestone
The French company noted that the signato- has been reached thanks to the dedication of
ries included eight export credit agencies (ECAs) the Mozambique authorities and the financial
and 19 commercial banks, as well as the African partners of the project.”
Development Bank (AfDB), a multi-lateral Equity in the Mozambique LNG consortium
institution. The ECAs are Atradius DSB of the is split between Total E&P Mozambique Area 1,
Netherlands, South Africa’s Export Credit Insur- with 26.5%; two Japanese companies, Mitsui and
ance Corp. (ECIC), the Export-Import Bank of Japan Oil, Gas and Metals National Corp. (JOG-
Thailand (EXIM Thailand), the Japan Bank for MEC), with 20%; Bharat Petroleum (India), with
International Co-operation (JBIC), Japan’s Nip- 15%; Beas Rovuma Energy Mozambique (a 60:40
pon Export and Investment Insurance (NEXI), joint venture between ONGC Videsh Ltd (OVL)
Italy’s Servizi Assicurativi del Commercio Estero and Oil India Ltd, or OIL), with 10%; Mozam-
(SACE), UK Export Finance (UKEF) and the US bique’s national oil company (NOC) ENH, with
Export-Import Bank (US Eximbank), it said. 10%; and PTTEP (Thailand), with 8.5%.
Total did not name all of the commercial The partners are building an onshore gas
banks involved in the deal. According to previ- liquefaction plant on the Afungi Peninsula. The
ous reports, the participants include Japan’s top onshore facility will process natural gas from
three private-sector commercial banks, Mitsub- Area 1, an offshore block in the Rovuma Basin. It
ishi UFJ Financial Group (MUFG), Sumitomo will eventually have two production trains, each
Mitsui Financial and Mizuho Financial. with a capacity of 6.44mn tpy. The first train is
Jean-Pierre Sbraire, the CFO of Total, due to come on stream in 2024. ™

Week 29 23•July•2020 www. NEWSBASE .com P15