Republic of Mozambique/Loan Insurance for Mozambique LNG (Rovuma Area 1 Block) Project
Nippon Export and Investment Insurance
Nippon Export and Investment Insurance (“NEXI”, Chairman and CEO: Atsuo Kuroda) has decided to provide loan insurance to support a LNG project in Rovuma Offshore Area 1 Block (“Area 1”) in the Republic of Mozambique (“Mozambique”). Of the participating interests in Area 1, which is located in the northern offshore of Mozambique, 20% is held by the Mitsui E&P Mozambique Area 1 Limited (“MEPMOZ”) in the UK, a company jointly owned by Mitsui Co., Ltd. (“Mitsui”) and Japan Oil, Gas and Metals National Corporation (“JOGMEC”).
This project develops the Golfinho/Atum gas field in Area 1, as an integrated upstream and midstream business to cover stages from natural gas production and liquefaction to LNG shipment. In addition to the aforementioned Mitsui and JOGMEC, the project is undertaken by the following companies: Total S.A. (France); Empresa Nacional de Hidrocarbonetos E.P. (Mozambique); Oil and Natural Gas Corporation Limited (India); Bharat Petroleum Corporation Limited (India); Oil India Limited (India); and PTT Exploration and Production Public Company Limited (Thailand). After its interest acquisition in 2018, MEPMOZ conducted exploration and evaluation in the Area 1 and discovered one of the world’s largest natural fields. With LNG global demand expected to grow, the project is likely to contribute to a stable supply of the resource by leveraging the abundant natural gas reserves and geographical advantage of being accessible to regions with a high demand for LNG, such as the Far East, Asia, Europe, and Latin America.
The project will provide approximately 30% of 12 million tons of LNG annual production to Japanese electricity and gas companies. As some agreements include terms to give the Japanese companies flexibility regarding such as destination clauses, they will be able to make adjustment to supply and demand through activities including overseas sales, besides obtaining LNG for domestic use.
Of USD 14.4 billion project financing raised by the project, NEXI underwrites insurance for USD 2 billion financing provided by MUFG Bank, Ltd.; Mizuho Bank, Ltd.; Sumitomo Mitsui Banking Corporation; Sumitomo Mitsui Trust Bank, Limited; Nippon Life Insurance Company; Credit Agricole Corporate and Investment Bank, Tokyo Branch; Societe Generale, Tokyo Branch; Shinsei Bank, Limited; and Standard Chartered Bank, Tokyo Branch. The Japan Bank for International Cooperation (JBIC) also has decided to provide loan to the project.
NEXI will continue to actively support projects that contribute to securing a stable supply of natural resources and energy in Japan and overseas business development of Japanese companies.
| Insureds | MUFG Bank, Ltd.; Mizuho Bank, Ltd.; Sumitomo Mitsui Banking Corporation; Sumitomo Mitsui Trust Bank, Limited; Nippon Life Insurance Company; Credit Agricole Corporate and Investment Bank, Tokyo Branch; Societe Generale, Tokyo Branch; Shinsei Bank, Limited; and Standard Chartered Bank, Tokyo Branch |
| Insured amount | USD 2 billion |
| Tenor | 18 years |
| Covered risks | Political risk: 100%, Credit risk: 97.5% |
Contact: Natural Resources Group I, Structured and Trade Finance Insurance Department
Tel: +81-(0)3-3512-7672