Page 6 - MEOG Week 26 2021
P. 6
MEOG FINANCE & INVESTMENT MEOG
QP does the rounds
on billion-dollar bond
QATAR STATE-OWNED Qatar Petroleum (QP) is and construction (ECP) contracts for NFE and
understood to have begun calls with investors the subsequent North Field South (NFS) expan-
this week ahead of a corporate bond offering that sion phase.
could raise up to $10bn. NFE will underpin the expansion of Qatar’s
The cash will be used to fund the upcoming LNG production capacity from 77mn tonnes
development phase of its largest gas asset, North per year currently to 110mn tpy following the
Field. start-up of four new mega-trains, with NFS
Speaking to Bloomberg on June 28, a source expected to start up in 2027, bringing Qatar’s
close to the deal said that QP is planning to issue LNG production capacity to 126mn tpy.
US dollar-denominated tranches with five, 10, 20 The Qatari government issued a $10bn
and 30-year maturities. The source said that the bond a year ago which was four and a half times
five, 10 and 20-year notes would be conventional oversubscribed.
debt, with the 30-year tranche being a dual-listed Meanwhile, in March QP announced that it
Formosa bond. would not renew the Qatargas Liquefied Natu-
QP has hired Citigroup and JPMorgan Chase ral Gas Company Ltd (QG1) joint venture (JV)
& Co to co-ordinate the planned transaction, when its concession expires at the end of next
while Bank of America, Credit Suisse, Deutsche year, at which point the state-owned firm will
Bank, Goldman Sachs, HSBC Holdings, Mitsub- take full control.
ishi UFJ and Qatar Bank will also be involved in The current JV arrangement with super-ma-
managing the deal. jors TotalEnergies (10%) and ExxonMobil
The company took a final investment deci- (10%), as well as Marubeni (7.5%) and Mitsui
sion (FID) on the $29bn gas expansion project in (7.5%), expires on December 31, and QP will
early March and has since proceeded to hand out assume full ownership on January 1, 2022, up
billions of dollars of engineering, procurement from its current 65% holding.
P6 www. NEWSBASE .com Week 26 30•June•2021
