Russian bank available to finance ENH in gas business – report

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Russian bank available to finance ENH in gas business – report

2:32 CAT | 22 Aug 2019

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in file CoM

Mozambique’s President Filipe Nyusi yesterday met representatives of Russian bank Gazprombank, which is dedicated to financing oil and gas sector projects.

At the end of the meeting, Marc Partridge, vice-president of the bank, announced that his conversation with Filipe Nyusi had covered the institution’s interest in financing part of the Rovuma Basin Area 1 project led by Anadarko, which has an estimated overall value of more than US$25 billion.

The Russian bank says it is in intense negotiations with Mozambique’s National Hydrocarbon Company (ENH) to make available the money it is seeking to fund its share of the project. ENH owns 15% of the Area 1 project, called Mozambique LNG.

In all, the state-owned company is looking for more than US$2 billion to meet its commitments. A relevant detail is that, in this year’s State Budget, the government asked parliament for authorisation to issue Sovereign Guarantees to ENH for this purpose.

Gazprombank’s vice president said the institution was available to finance this operation, depending on ongoing negotiations with ENH, and would also be prepared to lend ENH resources to improve its shareholder position in the Mozambique LNG project, as well as in the other two LNG projects.

It was not possible to obtain further comment from the Mozambican government, as ENH chairman Omar Mithá, was having parallel meetings and did not participate in President Nyusi’s agenda.

By Francisco Mandlate

Source: O País