PTTEP gets finance for Mozambique LNG
PTT Exploration and Production (PTTEP), the oil and gas drilling arm of national oil and gas conglomerate PTT, and business partners have reached a US$14.9-billion agreement with creditors to push ahead with a liquid natural gas (LNG) facility development project in Mozambique’s Rovuma Offshore Area 1.
The project, estimated to cost $20 billion, will be funded by equities and senior debts.
PTTEP informed the Stock Exchange of Thailand yesterday its wholly owned
PTTEP Mozambique Area 1 and investors in Rovuma Offshore Area 1 already signed senior debt financing agreements for the project.
“The signing demonstrates the project can attract global funding sources, ranging from credit agencies to multilateral development institutions and commercial banks,” said PTTEP president and chief executive Phongsthorn Thavisin.
PTTEP holds a 8.5% stake in a joint venture on Rovuma Offshore Area 1. Other investors are the project operator, Anadarko Mozambique Area 1, (26.5%), ENH Rovuma Area Um, S.A. (15%), Mitsui E&P Mozambique Area 1 Co (20%), ONGC Videsh Co (10%), Beas Rovuma Energy Mozambique Co (10%) and BPRL Ventures Mozambique BV (10%).
The group will develop the first onshore LNG facilities in Mozambique, consisting of two LNG trains with total nameplate capacity of 13.1 million tonnes per annum (MTPA).
The gas will come from the GolfinhoAtum fields located within Offshore Area 1.
Mr Phongsthorn said the project secured LNG sales of 11.1 MTPA with key LNG buyers in Asia and Europe. The volume accounts for more than 80% of the plant’s capacity.
It is a large gas project located in offshore Mozambique consisting of the Prosperidade field, Golfinho-Atum field, Orca field, Tubarao field and Tubarao-Tigre field, with substantial recoverable natural gas resources of 75 trillion cubic feet and the potential to become one of the world’s largest LNG supply hubs.
He said PTTEP has a long-term policy to expand the gas business by raising the proportion of total sales to 80% from 70%. Oil sales will fall accordingly to 20% from 30% within five years.