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Total in for $15.8 billion Mozambique gas project funding deal

Total the French oil exploration and production giant has secured $15.8 billion in funding for its massive liquefied natural gas (LNG) project in northern Mozambique, according to South African lender FirstRand’s local unit, FNB Mozambique. But the oil giant is yet to officially comment on this.

In a recent development, FNB Mozambique said the financing contracts for Total’s blockbuster development had been signed. FirstRand’s corporate and investment banking unit, Rand Merchant Bank (RMB), has previously said it was part of the consortium.

“FNB… intends to enter other large natural gas projects in Mozambique, just as it entered into Total’s financing, in a consortium of 20 banking institutions that granted $15.8 billion, for which the last contracts were signed recently.”  FNB Mozambique said.

According to Total, the Mozambique gas discovery is approximately 65 trillion cubic feet (the equivalent of 12 billion barrel oil field) of recoverable natural gas and was discovered in Offshore Area 1. The results of the drill stem testing (DST) program in the Prosperidade and Golfinho/Atum complexes demonstrate the outstanding flow characteristics of the reservoirs. Each flow test successfully flowed at facility-constrained rates of 90 to 100 million cubic feet per day (MMcf/d), which supports well designs of 100 to 200 MMcf/d. initial plans are for a two-train project with scope to expand up to 43 million tonnes per annum (Mtpa).

The discovery of these prolific quantities of natural gas in the Rovuma Basin off the coast of Northern Mozambique was made in 2010 and was followed by the signing of $20 billion final investment decision in June 2019.

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