DEAL: Mozambique’s $5 billion FLNG project

Author: Brian Yap | Published: 21 Jun 2017

Mozambique has hosted the country’s first floating liquefied natural gas (FLNG) project, also the first to have been financed globally. But unstable oil prices and the country’s ongoing risk of sovereign default concerned lenders.    

With many energy projects planned for a final investment decision (FID) between 2014 and 2016 having been deferred due to oil price concerns, all five sponsors for the Coral South FLNG project took their FID on June 1. On the same day, all the drilling, construction and installation contracts for the production facilities were signed in Maputo, Mozambique’s capital city.


"The oil price was below $30 and that produced a number of obvious concerns not only for the sponsors but also for the financiers"




But counsel involved in the deal point to the oil price slump as a key concern among sponsors and financiers regarding their ability to cover their...


 

 

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