Oil sponsored Mozambique Offshore Area 1 confirms LNG Project financing

The company is a sponsor in Area 1 Block, through its 40% shareholding in BREML, which holds a 10% Participating Interest in Area 1.

Mar 24, 2021 04:03 IST India Infoline News Service

Oil India Limited, the National Oil Company of India, announced Wednesday that Mozambique Rovuma Offshore Area-l Project has satisfied all the conditions precedent for the first debt drawdown of the project financing, which was finalized by the Project in July 2020.

The senior debt financing of USD 14.9 Billion comprises Export Credit Agencies (ECA) Direct Loans, ECA Covered Facilities, Commercial Bank Facilities and a Loan Facility with the African Development Bank. The first drawdown from project financing is expected in April 2021.

OIL is a Sponsor in Area 1 Block, through its 40% shareholding in BREML, which holds a 10% Participating Interest in Area 1. The remaining 60% shares in BREML are held by ONGC Videsh Limited. Area-l Project will be Mozambique's first onshore LNG development, initially consisting of two LNG trains with total nameplate capacity of 13.12 million tons per annum (MMTPA) for which Final Investment Decision (FID) at consortium level was announced on 18th June 2019.

The Project is operated by Total E&P Mozambique Area 1 Limitada, a wholly owned subsidiary of Total SE, with 26.5 percent working interest. Co-venturers include ENH Rovuma Area Um, S.A. (15 percent), Mitsui E&P Mozambique Areal Limited (20 percent), ONGC Videsh Rovuma Limited (10 percent), Beas Rovuma Energy Mozambique Limited (10 percent), BPRL Ventures Mozambique B.V. (10 percent), and PTTEP Mozambique Area 1 Limited (8.5%).

Oil India Ltd ended at Rs116.30 per piece down by Rs1.8 or 1.52% from its previous closing of Rs118.10 per piece on the BSE.

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