Page 7 - AfrOil Week 28 2022

AfrOil INVESTMENT AfrOil

JGC has agreed to build the FLNG that will process associated gas from the Yoho field (Image: JGC)
These are expected to total $5bn, or $2bn in the an FLNG vessel with a single production train
first phase of financing and $3bn in the second capable of turning out 1.2mn tonnes per year
phase. (tpy) of LNG and a storage capacity of 200,000
“[Under] the PPF, the Bank will be appointed cubic metres. It did not comment on the Nige-
as mandated lead arranger (MLA) and lead in rian company’s statements earlier this year that
syndicating the debt raise – with the ability to the partners had decided to build the ship with a
incorporate credit enhancements, if required,” larger production capacity of 1.52mn tpy.
Afreximbank said in its statement. “Through its According to previous reports, UTM Off-
financial advisory mandate, Afreximbank has shore will be installing the FLNG vessel for
been playing an instrumental role in structuring ExxonMobil (US) and NNPC Ltd, the two
the transaction to ensure optimal returns and shareholders in the Yoho oilfield, which lies
debt sizing, as well as identifying equity inves- within the OML 104 licence area. ExxonMobil
tors to invest in the project on favourable terms.” and its state-owned partner began extracting
The bank did not say whether any specific crude from Yoho in 2003 and have been flaring
lenders were ready to commit to the project. It associated gas or re-injecting it into the reser-
did stress, though, that during the pre-invest- voir to maximise oil output. Now that the site is
ment stage, it would deploy the PPF in order to mature, however, they see the FLNG project as a
de-risk the FLNG scheme and help it make rapid means of changing course and commercialising
progress toward bankability. the field’s gas as oil yields decline.
Additionally, it hailed the ground-breaking As of last year, Yoho was still yielding about
nature of the project. It said in its statement that 35,000 barrels per day (bpd) of oil. ExxonMobil
the initiative had “historical significance, as it and NNPC Ltd have been using a floating pro-
is the first FLNG project developed by an Afri- duction, storage and off-loading (FPSO) vessel
can-owned company on the continent.” to develop the offshore site. Presumably the
Afreximbank went on to say that it was pro- FLNG vessel will be installed near the FPSO, at
viding support for UTM Offshore’s plan to build a site about 60 km offshore Akwa Ibom State. ™

PERFORMANCE
NOC lifts force majeure on two terminals

LIBYA LIBYA’S state-owned National Oil Corp. (NOC) oil supply, pointing that companies had been
decided on July 13 to lift force majeure on two instructed to boost oil and gas output gradually.
key oil terminals that have been closed since Sanallah was speaking about a week after Lib-
mid-April of this year, according to a statement ya’s central bank said in a separate statement that
by NOC’s longtime head Mustafa Sanallah. The NOC had estimated that recent oilfield closures
Zueitina and Brega terminals were opened to had resulted in nearly $3.5bn in losses. In its
allow entry to a tanker carrying condensate for statement, which cited NOC data, the bank said
use in power generation in eastern Libya. Libyan oil revenues fell by LYD100mn ($20mn)
Sanalla said talks have been taking place to year on year in the first half of the current year to
allow oil production for two Libyan subsidiary reach LYD37.3bn ($7.7bn) as of the end of June.
companies managed by Waha Oil and Melli- It also said that it had provided LYD34.7bn in
tah Oil and Gas. He reassured international oil temporary financial support to fund the com-
markets about NOC’s resolve to maintain its pany’s spending.

Week 28 13•July•2022 www. NEWSBASE .com P7