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Total reveals details of Mozambique

LNG financing deal

INVESTMENT 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
cover around three quarters of the projected project financing, less than one year after
costs of the Mozambique LNG project. Total assumed the role of operator of Mozam-
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 This is equivalent
mated at $20bn. of LNG in Mozambique. This key milestone
The French company noted that the signa- has been reached thanks to the dedication of to almost 75%
tories included eight export credit agencies the Mozambique authorities and the financial
(ECAs) and 19 commercial banks, as well as the partners of the project.” of post-final
African Development Bank (AfDB), a multi-lat- Equity in the Mozambique LNG consortium
eral institution. The ECAs are Atradius DSB of is split between Total E&P Mozambique Area 1, investment
the Netherlands, South Africa’s Export Credit with 26.5%; two Japanese companies, Mitsui and decision (FID)
Insurance Corp. (ECIC), the Export-Import Japan Oil, Gas and Metals National Corp. (JOG-
Bank of Thailand (EXIM Thailand), the Japan MEC), with 20%; Bharat Petroleum (India), costs, which have
Bank for International Co-operation (JBIC), with 15%; Beas Rovuma Energy Mozambique
Japan’s Nippon Export and Investment Insur- (a 60:40 joint venture between ONGC Videsh been estimated
ance (NEXI), Italy’s Servizi Assicurativi del Ltd (OVL) and Oil India Ltd, or OIL), with 10%;
Commercio Estero (SACE), UK Export Finance Mozambique’s national oil company (NOC) at $20bn.
(UKEF) and the US Export-Import Bank (US ENH, with 10%; and PTTEP (Thailand), with
Eximbank), it said. 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.™

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