africa commodities Finance Gas Mozambique

Mozambique’s ENH secures funding for natural gas project in September

A US$2.0 billion financing contract is due to be completed in September, the chairman of Mozambique’s national oil company ENH, said on Wednesday in Maputo.

Omar Mithá spoke about the loan during a open class for undergraduate, master’s and doctoral students in the area of Natural Sciences and Mathematics at Maputo University, the former Pedagogical University, on the theme of, “Oil and Gas: Socio-economic perspectives.”

ENH asked the government of Mozambique in 2018 to grant a sovereign guarantee on a loan to fund its participation in the Rovuma Basin Area 1 natural gas project, of which construction of the gas liquefaction plant began last week.

Last July, the company announced it would wait for better days or conditions to finance itself on international markets, as it will need a state guarantee, which in the past was granted illegally to two state-owned companies controlled by the intelligence services.

“We believe the government will wait until a possible restructuring of the issuance of Eurobonds [of tuna company Ematum] can be announced, which would improve the conditions currently required of ENH,” said a recent report on Mozambique by the Economist Intelligence Unit (EIU).

The Anadarko Petroleum Corporation in Mozambique, through its 100% controlled subsidiary Anadarko Moçambique Área 1, Ltd, operates the Rovuma Area 1 block, with 26.5%, in which its partners are ENH Rovuma Area Um, a subsidiary of Mozambican state-owned oil and gas company ENH, with 15%, Mitsui E&P Mozambique Area1 Ltd. (20%), ONGC Videsh Ltd. (10%), Beas Rovuma Energy Mozambique Limited (10%), BPRL Ventures Mozambique B.V. (10%), and PTTEP Mozambique Area 1 Limited (8.5%).

Source: Macauhub

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